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).
The Fifth Amendment to the United States Constitution guarantees the right to certain protections; the protection that has been in focus as far as offshore bank accounts and overseas assets are concerned is the ‘protection from self-incrimination’.
Scammers usually target taxpayers who either did not or were not able to timely file their tax statements before the April 15th deadline. IRS Form W-8BEN Scammer’s typically send out scam mails (email, postal service mail, facsimiles, etc.) to acquire taxpayer’s personal information.
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.
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.
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.
IRS must exercise ‘GOOD FAITH’. When you receive an IRS summons, first check to see whether the Powell requirements have been met or not. If you suspect that the IRS has exceeded its ‘power’, you can challenge it under Powell in federal court.
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.