A federal court in San Francisco authorized the Internal Revenue Service (IRS) to serve a John Doe Summons seeking information about U.S. taxpayers who hold correspondent accounts at Wells Fargo for Canadian Imperial Bank of Commerce's FirstCaribbean International...
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Month: April 2013
The IRS and California gain over $1B from Zuckerberg
Most everyone knows that Mark Zuckerberg is the founder and CEO of the popular social media site Facebook. What may not have been as well known until recently is that Zuckerberg owes more than $1 billion in taxes to the IRS and the state of California. That represents...
California inmates commit tax crimes from within prison walls?
The Treasury Inspector General for Tax Administration has reported that the amount of tax fraud perpetrated by prison inmates has risen upwards of 1,000 percent over the past 10 years. Reportedly, these tax crimes tend to go unpunished for years at a time. Some...
Court Holds That Compensation Paid to S-Corporation’s Sole Employee Was Unreasonable
Recently, in Watson, P.C. v. Unites States, 668 F.3d 1008 (8th Cir. 2012), the Court of Appeals held that the Internal Revenue Service (IRS) properly re-characterized S-Corporation distributions as wages and were therefore subject to employment taxes. Watson should...
Two Arizona Businessmen and a California Attorney Convicted for Hiding Millions in Secret Foreign Bank Accounts at UBS and Pictet & Cie
Two Phoenix-area businessmen have been convicted of filing false federal income tax returns by concealing millions of dollars of assets in several secret Swiss bank accounts.On April 12, 2013, the U.S. Department of Justice (DOJ) announced that a jury...
Two Arizona Businessmen and a California Attorney Convicted for Hiding Millions in Secret Foreign Bank Accounts at UBS and Pictet & Cie
Two Phoenix-area businessmen have been convicted of filing false federal income tax returns by concealing millions of dollars of assets in several secret Swiss bank accounts.On April 12, 2013, the U.S. Department of Justice (DOJ) announced that a jury...
Which common deduction triggers California tax audits?
For many California residents, tax time is stressful. Aside from the hassle of going through receipts and worries that there could be missed deductions, many fear that they will be subjected to tax audits as a result of their return. While there are a number of issues...
IRS claims it can read your e-mail without a warrant
Recently, the IRS has publicly stated their position that there is no expectation of privacy regarding electronic communications, and that they may be able to view your electronic communications without a warrant.To read more, click here.
No IRS Form 8938 (Statement of Specified Foreign Financial Assets) is Required to File with Forms 1120, 1120S, 1065 and 1041 for 2012
Domestic Entity filers for tax year 2012 are not required to file Form 8938. The IRS anticipates issuing regulations in the future that will require a domestic entity to file Form 8938; but, until such regulations are issued, only individuals must file Form 8938....
Tax Court Limits Northern California Couples’ Real Estate Rental Loss Due To Passive Activity Rule
With the economic downturn the U.S. tax court has seen its fair share of cases tackling the limitation of real estate losses.In Hassanipour v. Commissioner, the U.S. Tax Court, held that a couple's losses from their rental activities were limited under IRC section...
