Saturday, December 27, 2014

Foreign Banks Blacklisted by the IRS

As part of the IRS' billion dollar effort to combat the war on offshore tax evasion the IRS has blacklisted certain Foreign Financial Institutions or Facilitators.   Thus, anyone who has assets at these foreign banks and who fails to properly report and account for these assets will pay 50% of the offshore penalty within the IRS Offshore Voluntary Disclosure Program and have a higher chance of criminal prosecution if they do not participate in the Offshore Voluntary Disclosure Program.

Click here to view the list of bad boy foreign banks

If you want to speak to a Tax Attorney who knows the offshore and foreign asset reporting rules and ways to minimize the exposure related to these offshore activities, feel free to contact the Wilson Tax Law Group at 714-463-4430.

Tuesday, December 23, 2014

DOJ Allows Israeli Bank to Pay its Way Out of Jail After Stealing Billions from USA

Bank Leumi, an Israeli bank, has entered into a deferred prosecution agreement with the Justice Department after disclosing that it had aided and assisted U.S. taxpayers to prepare and present false tax returns to the IRS by hiding income and assets in offshore bank accounts in Israel and elsewhere around the world. The agreement between the Bank Leumi Group and the Department of Justice marked the first time that an Israeli bank admitted to such criminal conduct which spanned over a 10-year period and included services and products designed to keep U.S. taxpayer accounts concealed at Bank Leumi locations all over the world.
The Bank Leumi Group has agreed to pay the United States a total of $270 million, of which $157 million represents the penalty for taxpayer accounts held at the Leumi Private Bank in Switzerland. The penalty permits certain Swiss banks to avoid prosecution by making a full and complete disclosure of their U.S. taxpayer-held accounts and paying substantial penalties. The agreement further provided that Bank Leumi Luxembourg and Leumi Private Bank will cease to provide banking and investment services for all accounts held or beneficially owned by U.S. taxpayers.
IRS Commissioner John Koskinen commented that the agreement against Leumi Bank was another historical event in the international tax area. He added that the IRS would not tolerate the use of offshore accounts to escape taxation, and that it would continue to focus on this priority area.
If you need assistance concerning the tax treatment of foreign assets, do not hesitate to contact a tax lawyer in Orange County.   Not even the foreign banks are immune to the efforts being taken by the US government.  The Orange County Tax Attorneys at Wilson Tax Law Group have experience in federal tax prosecutions and IRS matters concerning foreign assets. You can reach the Wilson Tax Law Group at 714-463-4430.

Wednesday, December 17, 2014

Curious What Countries Are Sharing Banking Information with the USA?

The IRS has just issued a list of the countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of information.   The United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate.  The exchange of information includes the reporting of certain deposit interest paid to nonresident alien individuals on or after January 1, 2013.

To see the list of countries click here:  LIST OF COUNTRIES.

Contact Joseph P. Wilson of the Wilson Tax Law Group at 714-463-4430 if you should have any questions.

Monday, December 15, 2014

Cannot Afford Your Property Taxes? New State Program Pays them for You

The California State Board of Equalization (BOE) has issued a letter concerning the law that reinstated the State Controller’s Property Tax Postponement Program, under which the Controller can pay property taxes to county tax collectors on behalf of qualifying individuals who are over the age of 62 or disabled.  Under the program, a claimant must have an annual income of $35,500 or less and at least 40% equity in his or her home. The BOE generally discusses:
  • requirements for county assessors who receive from the Controller a notice of lien for postponed property taxes;
  • assessors’ notice requirement to the Controller when property with a postponement lien changes ownership or a claimant transfers ownership, changes his or her mailing address, or dies; and
  • the Controller’s duty to record a release of the lien when the amount of the obligation secured by that lien is paid in full or otherwise discharged.
Applications may be filed with the Controller beginning September 1, 2016.  If you or your client want more information about this exciting new program, contact a property tax attorney who can assist you.  The  Wilson Tax Law Group specializes in property tax and income tax matters.  Joseph P. Wilson of the Wilson Tax Law Group can be reached at 714-463-4430 if you have any questions.

Friday, December 5, 2014

Wilson Tax Law Group - The Newport Beach Tax Attorney Blog: Property Tax: Ten Counties Allow Intercounty Base ...

Wilson Tax Law Group - The Newport Beach Tax Attorney Blog: Property Tax: Ten Counties Allow Intercounty Base ...: Effective November 20, 2014, 10 California counties will have property tax ordinances implementing the intercounty base year value transf...

Property Tax: Ten Counties Allow Intercounty Base Year Value Transfers

Effective November 20, 2014, 10 California counties will have property tax ordinances implementing the intercounty base year value transfer provisions for persons who are at least age 55 or are severely and permanently disabled. The counties are Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, and Ventura. The latest county to be added was San Bernardino, which adopted an ordinance in October 2014 that applies to replacement dwellings that are purchased or newly constructed in the county on or after January 1, 2014.  Be careful when deciding where to move because numerous counties do not honor the base year transfer.

If you or your client is at least age 55 and is considering whether to  move to a new residence be sure to contact a property tax expert to make sure you don't lose your low property tax base.  The  Wilson Tax Law Group specializes in property tax and income tax matters. Please contact Joseph P. Wilson at 714-463-4430 if you have any questions.

Monday, November 24, 2014

San Diego Tax Attorney Sentenced for Tax Evasion

Last Monday a US District Judge in San Diego sentenced Lloyd Irving Taylor to 5 1/2 years in federal prison

Former San Diego tax attorney sentenced for evading millions in taxes

Posted: Nov 17, 2014 6:40 PM PST Updated: Nov 17, 2014 6:40 PM PST

SAN DIEGO (CNS) - A one-time San Diego tax attorney and certified public accountant was sentenced Monday to 5 1/2 years in federal prison for using the identities of deceased children to create aliases that allowed him to evade millions of dollars in taxes. In handing down the punishment for Lloyd Irving Taylor, U.S. District Court Judge Michael Anello also ordered the 71-year-old defendant to pay about $2.2 million in restitution to the Internal Revenue Service.
Following a weeklong trial in June, a jury convicted Taylor of 19 felony charges, including aggravated identity theft, making false statements to a financial institution, tax evasion, corrupt interference with the IRS and lying on passport applications.
According to prosecutors, Taylor stole the personal information of dead children and used it to obtain fraudulent passports and other identifying documents, which he then used to open and maintain financial accounts so he could hide his income and assets from the IRS.
The stolen identities also allowed him to transfer funds between accounts and to buy assets, such as gold coins, as another means of skirting taxes, court documents state.
Similarly, Taylor created over a dozen fake churches and opened 31 related bank and investment accounts in their names. He then took advantage of the tax-exempt status of religious institutions to fraudulently claim that his income was not subject to federal taxes, according to the U.S. Attorney's Office in San Diego.
Among witnesses who testified during the trial was the brother of one of the deceased people whose identity was stolen, as well as an elderly blind woman whose Social Security number was filched by Taylor.
Despite working and earning money for over 40 years, Taylor filed federal tax returns just seven times, prosecutors said. All told, he failed to report about $5 million in income, on which he owed the IRS about $1.6 million, according to the U.S. Attorney's Office.

The sad news is that this is not the first tax attorney who has been convicted of tax evasion.  It is extremely important that when seeking tax advice as a business owners or individual that you vet your tax professional.  Ask questions to determine how long they have been an attorney.  Check to see if they have had any disciplinary actions.  Ask them if their clients get audited.   You should also check to determine whether the attorney previously worked as an attorney for the IRS, DOJ or FTB.  People who previously worked from the government understand the internal workings of the tax agencies.  People who did not, well, do not.

The last thing you need in your life is to receive bad tax advice and to find yourself the subject of an IRS civil examination or worse a criminal investigation.  Don't let this happen to you or your business.  

Whether you are a business owner needing basic tax advice or bookkeeping services or a taxpayer who is seeking assistance and may be in trouble with the IRS, know that the tax professionals at the Tax Law Offices of David W. Klasing are dedicated to being ethical and professional as well as highly effective. We will work diligently to ensure that we can secure you the best possible outcome for your situation or structure your tax transaction in a way that is most favorable to you, but will also do so within the parameters of the law. Call our Los Angeles tax lawyers today at (800) 805-9718 for a reduced-rate consultation and rest easy knowing that as our client, you are our top priority.