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Yearly Archives: 2017

Texas Tax Evader Pleads Guilty To Disguising Royalties as Scholarships PaymentsThrough Panama

May 30, 2017


A resident of College Station, Texas, pleaded guilty on May 26, 2017 to conspiring to defraud the United States by using offshore accounts in Panama to conceal more than $1.3 million in royalty income that she earned from oil wells.

 
According to documents and information provided to the court, Joyce Meads, 73, admitted that she filed false 1997 through 2009 individual income tax returns, omitting more than $1.3 million in royalty income that she received from oil wells. From approximately April 1997 through April 2010, she conspired with offshore promoters to disguise this income, setting up nominee companies in Delaware and Panama in the name of W.G. Holdings Corporation and transferring her interest in the oil wells to the nominee entity in Delaware. Meads’s monthly royalty checks were issued to W.G. Holdings.
 
For approximately a decade, Meads had her royalty checks sent to a Miami post office box where they were picked up, couriered to Panama and deposited into her nominee accounts. Meads repatriated funds by disguising them as scholarships or loans from W.G. Holdings to herself.
 
She later transferred the funds to bank accounts in her own name or her mother’s name. Meads admitted that she caused a tax loss of more than $250,000.
 
Two of the promoters who assisted Meads, Marc Harris of The Harris Organization, Republic of Panama, and Boyce Griffin of Offshore Management Alliance Ltd., Republic of Panama, have also been convicted of conspiracy and other charges and were previously sentenced to prison.
 
“As Today’s Plea Makes Clear - The Days of Safely Hiding Your Money Offshore Are Over!"
 
The Department continues to work with its law enforcement partners to find and hold accountable those who seek to evade paying their fair share of taxes.”
 
Sentencing is Scheduled for Aug. 4, 2017.  Meads Faces a Statutory Maximum Sentence of
  • 5 Years in Prison,
  • a Period of Supervised Release,
  • Restitution and
  • Monetary Penalties.
 
Still Have Undeclared Income from Offshore Banks or Offshore Promoters?
 

 
  
Want To Continue Enjoying Your Freedom?
 
 
Want to Know if the OVDP Program is Right for You?
 
Contact the Tax Lawyers at 
Marini& Associates, P.A.  
 
 
for a FREE Tax Consultation
at: www.TaxAid.com or www.OVDPLaw.com or
Toll Free at 888-8TaxAid (888) 882-9243
 
 
 
 
Source

 

Read more at: Tax Times blog

Last Chance To Come Clean … Automatic Exchange of Information Reporting Is Imminent!

May 26, 2017

On May 23, 2017 we posted May 31st Is Deadline For CRS Reporting where we listed the 50 Jurisdictions which will begin to exchange information in 2017.

Now HMRC has reminded financial institutions that the deadline for reporting their clients' accounts under the Automatic Exchange of Information rules falls in less than a week's time.

Returns must be submitted by May 31, 2017, including reportable accounts for the US Foreign Account Tax Compliance Act (FATCA), Crown Dependencies and Overseas Territories agreement, and the first year for the OECD's Common Reporting Standards.

Overview

Automatic Exchange of Information agreements are made between the UK and other countries. These agreements allow the exchange of information between tax authorities of different countries about financial accounts and investments to help stop tax evasion.

List of countries who have agreed to share information.

 
Financial institutions, for example, banks, building societies, insurance companies, investment companies, will provide information on non-UK residents with financial accounts and investments in the UK to HM Revenue & Customs (HMRC).
HMRC will share this information with the relevant countries. Information for financial institutions.
 
HMRC will receive information from other countries about UK residents with financial accounts and investments overseas.

The UK Has Automatic Exchange of Information
Agreements Under 4 Regimes.

1. United States Foreign Account Tax Compliance Act (FATCA)

  • The agreement between the UK and USA requires UK financial institutions to report to HMRC on US customers that hold accounts with them. 

2. Crown Dependencies and Overseas Territories

  • The agreement between the UK and its Crown Dependencies and UK Overseas Territories to report on those who are tax residents in one territory and hold accounts in the other. (US Taxpayers?) 

3. Common Reporting Standard

  • The standard for all automatic exchange of financial information. 

4. Directive on Administrative Co-operation

  • The Directive which applies the Common Reporting Standards throughout the European Union.
Further Information and Guidance

 

All references to Automatic Exchange of Information include United States Foreign Account Tax Compliance (FATCA), Crown Dependencies and Overseas Territories and the Common Reporting Standard.

Returns submitted after the deadline (May 31, 2017) or the filing of an incorrect return, may result in penalties being charged.

Still Have Undeclared Income from Banks or
 Companies Located in One of These Countries?
 

 
  
Enjoy Your Freedom?
 
 
Want to Know if the OVDP Program is Right for You?
 
Contact the Tax Lawyers at 
Marini& Associates, P.A.  
 
 
for a FREE Tax Consultation
at: www.TaxAid.com or www.OVDPLaw.com or
Toll Free at 888-8TaxAid (888) 882-9243





 

Read more at: Tax Times blog

How To Get The IRS To Accept Your Offer In Compromise?

May 23, 2017

Do you owe a substantial amount of taxes to the IRS?
If so, you've likely looked into establishing a payment plan.

What if you are simply unable to pay your tax balance? 
In this case, you might consider requesting an offer in compromise, which is a last-resort option that allows you to settle your account for literally pennies on the dollar. The key to getting approved for an offer in compromise is understanding reasonable collection potential which the IRS uses to decide if your account qualifies for this option.

A Definition of Reasonable Collection Potential
A reasonable collection potential refers to the maximum amount that the IRS believes it can collect from you over time. Generally, the agency uses a simple formula to calculate this amount, which you can easily figure on your own. However, if you want your request for an offer in compromise to be approved, you should offer the IRS at least the same amount as your reasonable collection potential and preferably a little more. If the agency believes it can collect more from you than you are currently offering it has no reason to approve your request.

How to Calculate Your Reasonable Collection Potential
Reasonable collection potential includes two factors: the liquidation value of your assets and your extra monthly income over the next four or five years. To figure your assets' liquidation value, add up the total cash you have on hand and in bank accounts as well as the current value of any investments. You'll also have to include the current value of your real assets, including cars, homes and property. You can calculate this by multiplying the fair market value by 80 percent and then subtracting any outstanding loans against the value.

The final figure is your additional monthly income after your necessary living expenses are paid. Simply deduct your essential expenses from your income and then multiply the money that is left by either 12 or 24 to figure your disposable income.. Add up your total disposable income, your current cash and investments and the liquidation value of your assets to arrive at your reasonable collection potential.

If you've been considering requesting an offer in compromise from the IRS, you need to understand how to figure your reasonable collection potential. Calculating this number can help you decide how much to offer the IRS as a lump sum which increases the chances that your request will be granted.

Downside to Submitting an OIC

Completing the forms is just the beginning. The IRS will ask you for rafts of financial documentation: pay stubs, bank records, vehicle registrations, and myriad other items. This is an exhaustive, time-consuming process. Some taxpayers wind up submitting boxloads of documents to the IRS to support their OIC request.

 

Have Tax Problems?
 
 Want to Know if you Qualify for an Offer?
 
 
Contact the Tax Lawyers at
Marini & Associates, P.A.
 
 for a FREE Tax Consultation Contact US at 
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888-8TaxAid (888 882-9243).
 

 

Read more at: Tax Times blog

OECD Guidance for CRS Automatic Exchange in Tax Matters

May 23, 2017


On May 23, 2017 we posted May 31st Is Deadline For CRS Reporting where we discussed that two weeks before the first OECD Common Reporting Standard (CRS) reporting deadline of  May 31, there are 47 Reportable Jurisdictions for the 2017 reporting year, in respect of 2016 reportable accounts.
On April 6, 2017 the OECD released on  new guidance for Automatic Exchange of Financial Account Information in Tax Matters. To further support the consistent implementation of the Common Reporting Standard (CRS), the OECD released:

For further information on the Standard for Automatic Exchange of Financial Account Information in Tax Matters, please visit: www.oecd.org/tax/automatic-exchange/common-reporting-standard. 
 Still Have Undeclared Income from Offshore Banks or 
Companies Located in One of These Reportable Jurisdictions?
 
 
 
Want to Know if the OVDP Program is Right for You?
 
Contact the Tax Lawyers at 
Marini& Associates, P.A.  
 
 
for a FREE Tax Consultation
at: www.TaxAid.com or www.OVDPLaw.com or
Toll Free at 888-8TaxAid (888) 882-9243
  

 
 
Sources: 

OECD
OECD (Updated Q&A)
OECD (Standard for AEOI)

 

Read more at: Tax Times blog

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