Steve Moskowitz, San Francisco Tax Attorney sat down with Ethan Bearman to discuss IRS and government priorities as they pertain to everyday individuals.
- Criminal Enforcement: The IRS is involved with NON-TAX crimes. Steve noted that a recent indictment (Moskowitz LLP does not represent the accused) were being investigated by the IRS. Probably an audit situation. However, the individuals here are accused of lying to the IRS agent. Specifically, lying about information that was submitted on a mortgage loan application. The government, (the Department of Justice) has charged the couple with felony making a false statement to a government agent.
Steve opines that these types of false statement crime prosecutions, are increasing in numbers. Steve noted it was particularly worrisome because individuals have discussions with the government over relatively benign matters, such as completing financial statements, talking to the IRS about tax bills that are delinquent, etc and that the false statement charge is a powerful tool of the government.
- Unfiled Tax Returns: Steve explains that if an individual does not file a tax return, the government will file one for you. This is called a Substitute for Return or SFR. Unfortunately in calculating the Substitute for Return, the government is under no obligation to give the individual deductions. As such, often many people find themselves paying more tax than they legally would have owed.
- Tax Deadline June 30th: Steve reminds everyone that the Information Return FBAR or Foreign Bank Account Report is due to be filed and received by June 30th. The FBAR is a tax information return required to be filed by all US Citizens and Greencard holders who have bank accounts or have signatory authority of the account outside the United States with a value of more than $10,000 (on anyone day during the year). Note that this summary is not complete as to all FBAR requirements and please see our website or IRS.gov for more information.