A recent Tax Notes Today article by Contributing Legal Editor, Jeremiah Coder, warns that the Internal Revenue Service's (IRS) Offshore Voluntary Disclosure Program (OVDP) may have limits which could have dire consequences for taxpayers that continue to hold out. Mr. Coder quotes recently confirmed Assistant Attorney General, with the Department of Justice, Kathryn Keneally:
The fiscal cliff, Washington's latest catch-phrase, holds a surprise for California taxpayers seeking early filing opportunities. According to acting IRS Commissioner Steven Miller, the tax controversy looms trouble on the horizon for nearly two-thirds of America's nearly 150 million tax filers. The AMT tax controversy means that many California taxpayers may be affected by Congress' delay in acting on the fiscal cliff issue. The AMT laws were initially enacted as part of the Tax Reform Act of 1969 and imposed an additional tax to the regular income tax.
Each year there is a substantial issue to be addressed for those businesses that owe taxes to state and federal agencies. Although companies are usually given notice of their tax debt obligations, there are some who simply cannot afford to pay these taxes at the end of the year. In California, the State Tax Board has made a list of the top 500 businesses that owe the most taxes. However, many questions have been raised about the effectiveness of this collection effort.
A man has recently been convicted of several federal charges. According to California authorities, the man was charged with tax crimes due to his attempt to hide certain assets. It was alleged that the man attempted to hide these assets so that he would not be subject to any tax liability.
Tax audits can be time and money consuming, as well as frustrating for all parties involved. In a previous post, we gave California small business owners some tips on responding to tax audits. In today's post, we discuss measures that may help small business owners avoid an audit in the first place.
A bill that recently passed the House of Representatives calls for federal employees to be fired if they owe too much in back taxes. The proposed law, which is now scheduled to go before Senate, would affect California federal employees who were facing substantial tax debt. However, the bill provided that those trying to work out their problems with the IRS would not be included in the law