Category Archives: criminal tax law

On June 27, 2022 we posted IRS CONTINUES to Criminally Prosecutes Employers For Failure To Pay Withheld Payroll Taxes - As Promised! which lists multiple recent cases where the IRS Criminally prosecutes Employers for Failure To Pay Withheld Payroll Taxes.

Now According To The DoJ, A Maryland Man
Is Indicted For Employment Taxes Violations.

A Maryland man made his initial appearance in federal court on August 4, 2022, after being charged with 16 counts of willful failure to collect, account for and pay over employment taxes to the IRS.

According to the indictment, Brett Hill, of Parkton, owned and operated two telecommunications companies and was responsible for collecting and paying to the IRS income, Social Security, and Medicare taxes withheld from the wages of employees at both companies. 

Hill allegedly collected such taxes from the employees of the two companies but did not pay those taxes to the IRS or file quarterly employment tax returns. 

If convicted, Hill faces up to five (5) years in prison for each of 16 counts of willful failure to collect or pay over employment taxes (possible 60 years). A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

  Thinking of Borrowing From Your Company's
Payroll Tax Withholdings?

You Better Thank Again, if You Like Your Freedom!

for a FREE Tax HELP 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

On its website, the IRS has announced that it has retired its Form 3520/3520A compliance campaign. 

This Is Welcome Relief For Taxpayers!

US citizens and resident individuals who are settlors/grantors or beneficiaries of foreign trusts may be required to file Form 3520-A and/or Form 3520 to report (1) ownership of the trust, (2) transfers of property to the trust, or (3) distributions from the trust. 

Two separate penalties equal to 5% of the trust's value (with a minimum penalty of $10,000) may apply for failure to report foreign trust ownership information on Form 3520-A and Form 3520, Part II. Separate penalties of up to 35% of a contribution to a foreign trust or 35% of a distribution from that trust (both with a minimum penalty of $10,000) may apply for failure to report the trust contribution or distribution on Form 3520.

Since May 21, 2018, when the IRS announced a Large Business and International (LB&I) compliance campaign focusing on noncompliance with the filing of Form 3520-A and Form 3520, IRS scrutiny of the forms has been significant. While the official campaign has been retired, the IRS will continue asserting penalties for late, incomplete or inaccurate Forms 3520-A and Forms 3520 as provided in its penalty assessment procedures.

The IRS's retirement of its official Form 3520-A/3520 LB&I compliance campaign should not be interpreted as the end of the agency's enforcement of these filings. 

Forms 3520 and 3520-A are filed at a separate IRS location from a taxpayer's return, so it is relatively simple for the IRS to assert penalties on late, incomplete or inaccurate forms. 

Taxpayers should therefore remain vigilant in ensuring that they timely comply with these filing requirements to avoid the imposition of significant penalties.

Have an IRS Tax Problem?

Need Form 3520 Penalties Abated?

Contact the Tax Lawyers at

Marini & Associates, P.A. 

for a FREE Tax HELP 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

According to Law360, The IRS Disclosure Office didn't follow Freedom of Information Act requirements in 16% of the requests the Treasury Inspector General for Tax Administration examined where the office partially or wholly denied a request because of an exemption, TIGTA said in a report.

TIGTA also reviewed all 34 Fiscal Year 2021 I.R.C. § 6103(c) and (e) requests documented in FOIAXpress for which the IRS withheld information from the requestor. While TIGTA determined that information was properly withheld or released in most cases, the Disclosure Office did not follow FOIA requirements when withholding or releasing information for 13 (16 percent) cases. The Disclosure Office properly processed all 34 I.R.C. § 6103(c) and (e) requests. 

Have an IRS Tax Problem?

     Contact the Tax Lawyers at

Marini & Associates, P.A. 

for a FREE Tax HELP 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

On July 28, 2022 we posted Manchin & Schumer Agree on Build Back "SOMEWHAT" Better Deal With 15% Corp. Minimum Tax & Increased Tax Enforcement, where we discussed that Sen. Joe Manchin & Chuck Schumer agreed on legislation that would impose a 15% corporate minimum tax as part of a larger package to address tax, energy and health care costs.

Now The Proposal To Appropriate $80 Billion Over 10 Years To The IRS Is Back On The Table As Part Of A Reconciliation Bill Recently Announced By Senate Democrats.

The BBB, once a $1.7 trillion legislative package, failed to gain enough support in the Senate to advance beyond the House of Representatives. While some provisions were axed or modified to appease the majority party's more moderate senators, like Sen. Joe Manchin of West Virginia, IRS funding was left intact. The appropriated amounts and their intended purposes are largely untouched in what is now the Inflation Reduction Act of 2022 (IRA 2022; H.R. 5376).

As written, the funds would be available to the IRS through September 30, 2031, across four areas of the agency. 

Enforcement-Related Funds, At $45.6 Billion, Make Up More Than Half 

That's up from the nearly $44.9 billion proposed in the BBB. The goal would be to reduce the so-called tax gap by enhancing the IRS' means of capturing revenue from taxes that may otherwise not have been collected.

Further, The Funds Would Cover Litigation
And Criminal Investigation Expenses.

Notably, the enforcement section of the new act states that the funding is also for "digital asset monitoring and compliance activities," language also present in the November 3, 2021, House-amended version of the BBB. 

Notably, the enforcement section of the new act states that the funding is also for "digital asset monitoring and compliance activities," language also present in the November 3, 2021, House-amended version of the BBB. 

This definition subsequently became law when the Infrastructure Investment and Jobs Act (IIJA; PL 117-58) was enacted November 15, 2021. Presumably, the monitoring and compliance activities identified in the Act would apply to digital assets as defined by the IIJA, which also established that a digital asset broker is anyone who "regularly provides any service effectuating transfers of digital assets on behalf of another person."

In March, the Biden administration indicated in its fiscal 2023 Green Book of budget priorities that digital assets would be a focal point of future strategies to address noncompliance. 

Various IRS officials speaking at tax conferences this year have reiterated that the agency is devoting more attention to tax avoidance behaviors involving digital assets that contribute to the tax gap.

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