The Internal Revenue Service on March 12, 2019 warned taxpayers in IR-2019-36 to avoid falsely inflating deductions or credits on tax returns as part of its 2019 list of the “Dirty Dozen” tax scams.Taxpayers should watch for areas frequently targeted by unscrupulous tax preparers include overstating deductions such as charitable contributions, medical expenses, padding business expenses or…
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Budget Cuts Leading to Fewer IRS Investigations
According to researchers and former government auditors, budget cuts within the Internal Revenue Service (IRS), which have cut enforcement staff by a third, may be responsible for the drop in the number of tax evasion cases pursued in recent years. In 2017, 795 cases were brought be the IRS’ criminal division, representing a drop of…
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The Old One-Two Punch – Stealing and Not Reporting Your Stolen Income
According to the DoJ, an Alabama Woman Sentenced to 46 Months in Prison for Stealing Over $700,000 From Her Employer and Failing to Report Income on Her Tax Returns. Isn't that amazing? Can you imagine stealing income and not paying taxes on your stolen income? Have none of these taxpayers (and I use that term loosely)…
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SC Will Not Review LLCs' Claim That John Doe summonses Violated Its Rights Under Federal Privacy Law
The Supreme Court has refused to review a Sixth Circuit decision, affirming a district court, which dismissed claims filed by two limited liability companies (LLCs) that IRS violated the Right to Financial Privacy Act by issuing John Doe summonses for their financial information without prior court approval. IRS issued two "John Doe" summonses without first…
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