Robert J. Fedor, Esq., L.L.C.

Tax Evasion Archives

Governments take action to shut down foreign tax loopholes and shelters

Many people, particularly those with considerable amounts of wealth, rely upon the expertise of financial advisors and tax professionals when figuring out how to make and retain money. In years past, many Americans and citizens of other countries took advantage of potential tax shelters and loopholes associated with foreign accounts. Today, with the enaction of FATCA, the U.S. has largely cracked down on these practices. However, other methods to secure assets and possibly avoid paying taxes still exist.

Former reality star finds self in a tough "situation" with the IRS

Ohio residents were first introduced to the MTV television series Jersey Shore in 2009. Since that time, the antics of the television show's cast members on and off camera have been the subject of many news stories and legal cases.

Addressing compliance issues related to offshore financial accounts

The Internal Revenue Service combats the circumvention of United States law by requiring U.S. citizens and residents with money in foreign accounts to report those accounts each year by completing the Report of Foreign Bank and Financial Accounts, or FBAR. Under the Bank Secrecy Act, foreign trusts, mutual funds, brokerage accounts and bank accounts, along with any dividends, interest, gains or losses associated with those accounts, must be reported.

Tax woes of the rich and famous

When it comes to some celebrities, the phrase more money, more problems seems to definitely apply. The IRS doesn't care who you are or how famous you are. If the federal government believes you owe it money, it will take action to recoup the amount in dispute, impose penalties and, if necessary, take legal action.

U.S. citizens living in Canada oppose FATCA

The full and widespread effects of the U.S. federal government's attempts to crack down on foreign asset and account holders are being felt around the world. The Foreign Account Tax Compliance Act calls upon foreign governments and financial institutions to report and provide information about U.S. citizens with known foreign accounts and assets totaling $50,000 or more.

For entrepreneurs and small business owners, line between personal and professional easily blurred

Starting a business or some type of start-up is a major commitment and the men and women who do so must be dedicated and resourceful. When starting out or expanding operations, entrepreneurs and small business owners must often rely upon bank loans and lines of credit for financing. In addition, these individuals frequently use a large portion of their own personal funds to pay for expenditures and operational costs. In some cases, the lines between business and personal become blurred and finances are co-mingled.

Small business owners fearing criminal tax charges advised to seek legal advice

Small business owners are often credited with serving a vital role in the U.S. economy and providing for both its stability and growth. While small business owners took a tremendous financial hit during the recent recession, many fought back and today continue to thrive and provide vital jobs and services to the communities they serve.

Judge considers request for $750 million penalty for tax evasion

State and federal agencies take allegations of tax crimes, including tax evasion, very seriously. In many cases, there seems to be no limit to the efforts spent on identifying fraud and then holding the accused responsible. Agencies including the Securities and Exchange Commission have substantial resources at their disposal and they may direct them all at a person accused of not paying taxes.

When it comes to reporting foreign assets, actions speak louder than words

We've previously provided information related to some of the new IRS requirements concerning reporting the existence of foreign accounts and assets. We also discussed how individuals who fail to comply with these new regulations can own up to and remedy their mistakes by contacting the IRS and stating whether their errors were willful or non-willful. While the preferred, and less expensive, route is to assert that non-compliance with or failure to file a Report of Foreign Bank and Financial accounts was non-willful, or innocent, in nature; proving such may be more difficult than one anticipates.