Category Archives: criminal tax law

On March 24, 2020 we posted IRS Officially Extends Time to File To July 15 Because of Coronavirus, where we discussed that in Notice 2020-18, IRB 2020-15, IRS has made official the March 20 tweet by Treasury Secretary Mnuchin that postpones until July 15, 2020, the filing date for 2019 federal income tax returns and 2020 federal income tax estimates that would otherwise be due on April 15, 2020. The Notice also updates a previous Notice with respect to the amount of tax payment that can be postponed. 

Can’t File By July 15?
Use Free File to Get a Extension;
E-Pay and Payment Agreement
Options Available to People Who Owe Tax

The Internal Revenue Service reminded taxpayers that quick and easy solutions are available if they can’t file their returns or pay their taxes on time, and they can even request relief online. The IRS says don’t panic. Tax-filing extensions are available to taxpayers who need more time to finish their returns. 

Remember, This Is An Extension Of Time To File;
Not An Extension Of Time To Pay!

However, taxpayers who are having trouble paying what they owe may qualify for payment plans and other relief. Either way, taxpayers will avoid stiff penalties if they file either a regular income tax return or a request for a tax-filing extension by this year’s July 15 deadline. 

Taxpayers Should File, Even If They Can’t Pay The Full Amount Due. 

More Time to File

People who haven’t finished filling out their return can get an automatic extension until October 15, 2020. The fastest and easiest way to get the extra time is through the Free File link on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an automatic tax-filing extension on Form 4868.

Filing this form gives taxpayers until Oct. 15 to file a return. To get the extension, taxpayers must estimate their tax liability on this form and should also pay any amount due.

By properly filing this form, a taxpayer will avoid the late-filing penalty, normally five percent per month based on the unpaid balance, that applies to returns filed after the deadline. In addition, any payment made with an extension request will reduce or eliminate interest and late-payment penalties that apply to payments made after April 15. The current interest rate is three percent per year, compounded daily, and the late-payment penalty is normally 0.5 percent per month.

Besides Free File, taxpayers can choose to request an extension through a paid tax preparer, using tax-preparation software or by filing a paper Form 4868, available on IRS.gov. Of the nearly 10.7 million extension forms received by the IRS last year, almost 5.8 million were filed electronically.

Easy Ways to E-Pay

Taxpayers with a balance due now have several quick and easy ways to electronically pay what they owe. They include:

• Electronic Federal Tax Payment System (EFTPS). This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll or for more information, call 800-316-6541 or visit www.eftps.gov.
• Electronic funds withdrawal. E-file and e-pay in a single step.
• Credit or debit card. Both paper and electronic filers can pay their taxes by phone or online through any of several authorized credit and debit card processors. Though the IRS does not charge a fee for this service, the card processors do. For taxpayers who itemize their deductions, these convenience fees can be claimed on Schedule A Line 23.

Taxpayers who choose to pay by check or money order should make the payment out to the “United States Treasury.” Write “2012 Form 1040,” name, address, daytime phone number and Social Security number on the front of the check or money order. To help insure that the payment is credited promptly, also enclose a Form 1040-V payment voucher.

More Time to Pay

Taxpayers who have finished their returns should file by the regular July 15 deadline, even if they can’t pay the full amount due. In many cases, those struggling with unpaid taxes qualify for one of several relief programs, including the following:

• Most people can set up a payment agreement with the IRS. Those who owe $50,000 or less in combined tax, penalties and interest can use the Streamlined Procedure to set up a monthly payment agreement for up to 72 months. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS. 
• Some struggling taxpayers may qualify for an Offer in Compromise  This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay. 

Can't Pay Your Taxes?

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

 

 

Read more at: Tax Times blog

The Dutch government announced on 29-05-2020 that it plans to introduce a withholding tax on dividends paid to tax havens in an effort to curtail tax abuse and dispel its image as a country that serves as a transit point for companies engaged in tax avoidance.

In 2024 the Dutch government is planning to introduce a new withholding tax on dividend flows to low tax jurisdictions. This will mark another big step in the fight against tax avoidance. 

The New Tax Will Come on Top Of The Withholding
Tax To Be Imposed on Interest and Royalties From 2021.

The New Tax Will Enable The Netherlands To Tax
Dividend Payments To Countries That Levy
Little or No Tax And Will Also Help Curb
The Use Of The Netherlands As A Conduit Country.

The measure will apply to financial flows to countries with a corporate tax rate of under 9% and to countries on the EU blacklist, even if the Netherlands has a tax treaty with them.

As State Secretary for Finance Hans Vijlbrief explains: ‘This additional withholding tax represents another major step in our fight against tax avoidance. Financial flows channeled from or through the Netherlands to another country where they are not or not sufficiently taxed, will soon no longer go untaxed. It’s now vital to make even better international agreements to prevent other countries being used for tax avoidance purposes.’

From 2021 interest and royalties will be subject to a withholding tax. This is one of the measures taken by this government in recent years to tackle tax avoidance. The effects of these measures are monitored wherever possible. This has revealed that, contrary to expectations, there are large dividend flows to countries that levy too little tax. 

In 2016 they totaled 35 billion euros, and not 22 billion euros, as announced earlier. The figures for 2018 show that this amount has now risen to nearly 37 billion euros. The reason the initial estimate was too low is that earlier surveys by SEO Amsterdam Economics only looked at dividends paid out from current-year profit, whereas the Dutch central bank (DNB) also tracks retained earnings that may be paid out in later years. The withholding taxes on interest, royalties and dividends will specifically target these financial flows.

Need To Restructure Your Netherlands Companies?

 

Contact the Tax Lawyers at 

Marini & Associates, P.A.  

for a FREE Tax HELP Contact us at:

www.TaxAid.com or www.OVDPLaw.com 

orToll Free at 888-8TaxAid

 

Read more at: Tax Times blog

The Tax Court in a press release dated May 29, 2020 advised that as the COVID-19 pandemic continues to present public health risks and challenges, particularly where multiple individuals come together in a courtroom and in response, and until further notice, Court proceedings will be conducted remotely. 

See Administrative Order 2020-02 regarding remote proceedings and Administrative Order 2020-03 regarding Limited Entries of Appearance. If you have any questions, contact the Public Affairs Office at (202) 521-3355.

The Court will provide public access to the Court’s remote proceedings via real-time audio with dial-in information for each session posted on the Court’s website.

Administrative Order 2020-02 contains sample orders, such as the new standing Pretrial Order, and notices, such as the new Notice Setting Case for Trial, that incorporate the Court’s new remote proceeding procedures. The sample orders and notices will also be posted on the Court’s website under “Forms.”

According to the new Pretrial Order, litigants may appear for remote proceedings by telephone or by video using Zoomgov, which doesn’t require a personal Zoom account and is available to use free of charge. More information about how to use Zoomgov to appear at a Tax Court proceeding can be found on the Tax Court’s website.

Need Effective Tax Court Representation?

 

for a FREE Tax HELP Contact Us at:

www.TaxAid.com or www.OVDPLaw.com 

orToll Free at 888-8TaxAid

Read more at: Tax Times blog

On October 29, 2019 we posted The IRS is Now Criminally Prosecuting Employers For FailureTo Pay Withheld Payroll Taxes! where we discussed that the IRS is stepping up criminally prosecuting business owners for failing to turn over withheld payroll taxes and that in the last week there are no less than five (5) criminal prosecutions of business owners for failing the turnover withheld payroll taxes.

Now according to the DoJ, A Michigan real estate developer has been indicted for Tax Fraud! A federal grand jury in Grand Rapids, Michigan, returned an indictment on June 4, 2020, charging a Michigan businessman with tax evasion, filing false documents with the Internal Revenue Service (IRS), making false statements to IRS Criminal Investigation (IRS-CI) agents, and mortgage fraud. 

According to the indictment, Scott Allan Chappelle, of Okemos and East Lansing, Michigan, was an attorney and former Certified Public Accountant who operated Terra Management Company LLC, Strathmore Development Company Michigan LLC, and Terra Holding LLC, companies involved in real estate development and property management. 

Chappelle allegedly failed to pay over to the IRS employment taxes that were withheld from the wages of the companies’ employees. After the IRS attempted to collect the unpaid taxes, from 2010 through 2019, Chappelle allegedly evaded the payment of more than $830,000 in unpaid taxes by making false statements to the IRS about his and his companies’ assets and income, failing to disclose his vacation house on Lake Michigan, and purchasing real property in nominee names instead of his own. 

Chappelle is also charged with making false statements to IRS-CI agents during its criminal investigation. As alleged, Chappelle told investigators that he had not personally purchased any real estate during the last three years when in fact he had purchased both a condominium in East Lansing and a house in Powell, Ohio, during that time. 

The indictment further alleges that Chappelle falsely told investigators that the condominium was for his son and paid for with student loan funds. 

Chappelle Is Also Charged With Filing A Tax Return For Terra Holdings on Which He Falsely Claimed That The Company Had No Employees And Paid No Wages.

The indictment also charges that Chappelle made false statements and submitted fraudulent documents to a bank when refinancing his lake house mortgage. 

If convicted, Chappelle faces a maximum term of imprisonment of five (5) years for tax evasion and making a false statement, three (3) years for filing a false document with the IRS, and thirty (30) years for bank fraud. He also faces a period of supervised release, restitution, and monetary penalties. 

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

 

Thinking of Borrowing From Your Company's

Payroll Tax Withholdings?

You Better Thank Again, if You Like Your Freedom!

Have Payroll Tax Problems?

 

 

 Contact the Tax Lawyers at 

Marini & Associates, P.A. 

 

for a FREE Tax HELP Contact Us at:

www.TaxAid.com or www.OVDPLaw.com 

orToll Free at 888-8TaxAid

 

Read more at: Tax Times blog