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Tax debt reduction plans are heavily advertised because of their attractiveness to taxpayers deep in tax debt. Many fraudulent tax resolution companies have used tax reduction plans, specifically Offer in Compromise, to tempt taxpayers into contracting their services. In reality, tax reduction plans have strict qualifying factors that most taxpayers do not meet.The most common... Continue reading →

The Foreign Account Tax Compliance Act (FACTA), which was created to curb tax evasion, has increased the tax troubles of Americans living abroad. Even though the effort will increase transparency in the financial activity of American taxpayers overseas, especially in tax havens, it is the average taxpayer that will shoulder the increased tax burden.Americans living... Continue reading →

Americans who live overseas already face the extra challenges of more paperwork and tax reporting requirements entailed in living abroad. Now, the American Citizens Abroad (ACA) organization has discovered that many Americans living abroad will be subject to double taxation due to certain clauses of the Affordable Care Act.Americans living overseas whose income reaches a... Continue reading →

Taxpayers that have the financial capability to pay the entire amount their tax debt should not apply for tax reduction plans such as Offer in Compromise or Partial Payment Installment Agreement. They must consider whether they can pay the entire amount in a single payment or prefer to pay it in installments.The advantage of paying... Continue reading →

Tax debt that remains unpaid will grow because the IRS charges interest and penalties on unpaid debt. Even after a taxpayer has qualified for a payment plan and has started to repay the tax debt, the interest and penalties keep accumulating on the amount that remains to be paid. Interest and penalties only stop with... Continue reading →

Tax evasion is the use of illegal means to avoid paying taxes. There are many different ways taxpayers evade taxes, including using tax havens to keep unaccounted money and assets, under-reporting income, filing a fraudulent tax return and claiming false deductions. Tax evasion is a crime and is punishable under law. The punishment for tax... Continue reading →

Tax evasion attracts stiff punishment that may include imprisonment. Penalties for tax evasion are harsh, but the IRS offers the Offshore Voluntary Disclosure Program (OVDP) to encourage taxpayers to get back into compliance. The OVDP allows taxpayers to get current with their tax filings without attracting heavy penalty and the risk of imprisonment. The penalties... Continue reading →

The U.S. has been targeting tax evasion through Foreign Account Tax Compliance Act (FATCA). Combating tax evasion is a long, hard battle, but the IRS is making rapid improvements. In November, the U.S. made FATCA agreements with the Caymans and Costa Rica. Many more agreements are expected to be made in the coming year.The U.S.... Continue reading →

Tax debt especially if it is old and requires negotiation with the IRS, needs to be resolved with proper planning, analysis and expertise. It is essential for taxpayers to get professional help if they are seeking tax debt reduction, postponement of payment or payment through installments. There are many factors that affect tax debt resolution,... Continue reading →

Curbing tax evasion is difficult because taxes can be evaded both legally and illegally. Taxes are evaded legally using loopholes in the tax code. The recent case of Apple Inc. involved evasion of taxes using legal means such as creating a subsidiary of the company in a country, in this case, Ireland, with a much... Continue reading →