IRS Targets: Tax Audits of Partnerships, LLCs, and other Pass-through Entities

The Internal Revenue Service announced on November 7, 2013, that it intends to make auditing and examining partnership and other pass-through entities, such as LLCs, S-Corporations, and sole proprietorships a top priority in 2014.  This comes after years of targeting corporations for exam. Pass-Through Entity returns are subject to the...

Tax Case of the Week: Trust Fund Recovery Penalty for a Responsible Person

This week, the Court of Appeals for the 4th Circuit decided a case regarding whether the trust fund recovery penalties were properly imposed against an individual, who was an officer of the corporation that failed to pay over payroll tax, but was not involved with day to day operations, and...

FTB Collections Gone Wrong

On this blog we often report about individuals who were caught avoiding paying their taxes and punished. Sometimes, however, the Internal Revenue Service (IRS) and the Franchise Tax Board (FTB) get it completely wrong. For instance, recently a Nevada-resident woman, age 65, received notices from the Franchise Tax Board stating...

DOJ: Hiding assets in Switzerland is ‘beyond foolish’

U.S. citizens and permanent residents are required by law to report any assets held in foreign bank accounts to the Internal Revenue Service (IRS). With the upcoming implementation of the Foreign Account Tax Compliance Act (FATCA), it will be extremely difficult for Americans to conceal funds held in other countries....

Report: IRS needs to increase prior- and subsequent-year tax return audits

According to a report by the Treasury Inspector General for Tax Administration (TIGTA), The Internal Revenue Service (IRS) needs to develop and implement more ways to determine which tax returns should be audited. The report recommends that the tax-collecting agency audit more of the prior- and subsequent-year tax returns of...

San Francisco man admits hiding foreign bank account

If you hold assets in a foreign bank account, you are required by law to report these funds to the Internal Revenue Service (IRS). Although many taxpayers have hidden foreign accounts from the government in the past, the government through its Offshore Initiative has drastically increased the identification of those...