The German state of North Rhine-Westphalia has bought another stolen CD containing confidential details of Swiss bank accounts, it is reported. The state is already notorious for having bought a CD containing bank client data stolen from Credit Suisse in Zurich, which led to the prosecution of hundreds of German taxpayers with undeclared Swiss accounts.…
Read more
Tax amnesty offered to Americans in Mexico
The U.S. Internal Revenue Service said it will waive potentially massive penalties for certain “low compliance risk” tax payers who opt to come clean. The IRS is aware that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs). Some of…
Read more
State Sales Tax Audits On The Rise
With the increasing pressure to close budget gaps, state revenue departments must look for opportunities to revitalize their revenue streams. One way is to increase the number and scope of audits performed on taxpayers, thereby allowing states to collect more revenue without enacting new taxes or increasing tax rates. As a result, taxpayers are becoming…
Read more
Debtors’ taxes are not discharged in bankruptcy where tax return was filed late .
The United States Bankruptcy Appellate Panel (BAP) for the Tenth Circuit has held that a debtor's Form 1040 filed after IRS had assessed the tax liabilities for the year involved did not qualify as a return, as defined by the so-called “hanging paragraph” following 11 USC 523(a)(19). As a result, the tax debt relating to…
Read more
