The Internal Revenue Code provides for imposition of an accuracy-related penalty of twenty percent (20%) on underpayment of tax. The taxpayer could be subjected to the accuracy-related penalty for negligently understating their income or over stating their expenses, or for any other substantial understatement of their tax liability. A taxpayer may seek relief from the imposition of an accuracy-related penalty if the taxpayer acted with reasonable cause and in good faith pursuant to I.R.C. Sec. 6664(c)(1).

Noncitizens In Danger of Deportation | Federal, State & Local Tax Violations Could Be Deportable Offenses!

Noncitizens of the U.S.A.  who commit certain federal tax offenses are subject to deportation as aliens. If the government asserts and proves tax evasion, the LPR (Lawful Permanent Resident) or other noncitizen is deportable because tax evasion is a deportable offense. Aliens may also be deportable under the Kawashima holding if a tax loss to the government exceeds $10,000.

Taxpayer Due Process in IRS Collections

In the event a taxpayer fails to pay any federal income, gift, or estate tax liability after notice and demand, the United States Internal Revenue Service (IRS) is authorized to collect the tax by levy on the taxpayer’s property.  The IRS must comply with due process collection procedures prior this. The IRS must first issue a final notice of intent to levy and/or a notice of federal tax lien and notify the taxpayer of the right to an administrative hearing before Appeals.

Are Resident Aliens Subject to U.S. Federal Taxes?

Yes, resident aliens are subject to U.S. federal taxes on their worldwide income.  If you are a green card holder; you are a resident of the United States and therefore are subject to U.S. tax laws.  If you were physically present in the U.S. for at least 31 calendar days during the course of the year and 183 days during the 3 year period that includes the current year and two previous years immediately preceding it; you are subject to U.S. tax laws.

Estate Planning Using Trust : Protect Your Assets, Pass Your Legacy and Manage Tax Liability

Proper estate planning permits you to give your assets to whom you want, when you want, and how you want.  A trust could be used to manage estate taxes, protect your children, protect your privacy & control your wealth distribution and provide probate savings.  The terms and conditions governing the trust administration can be kept confidential.