Blogs

The Foreign Account Tax Compliance Act (FATCA), enacted by Congress in 2010, was introduced to curb tax evasion. Under FATCA, foreign financial institutions are required to share tax sensitive information about the financial accounts held by U.S. taxpayers in their country. Those U.S. taxpayers who hold a substantial ownership of interest in foreign entities also... Continue reading →

The Obama administration has been working to increase revenue through increasing taxes. For 2013, the month of April brought good news for them, as it made a record for revenue generation. The U.S. Treasury received a surplus of $113 billion for the month, which is the since 2008. The policy of increased revenue generation, coupled... Continue reading →

To collect more revenue and improve compliance, the government is focusing on introducing new tax laws and altering old ones.  The beginning of 2013 brought many of these tax changes, and the trend seems to be continuing with a proposed Internet sales tax bill. Apart from the new tax on investment income and Medicare taxes,... Continue reading →

In June 2012, the IRS announced that its Offshore Voluntary Disclosure Programs (OVDP) recovered more than $5 billion in hidden tax money from overseas accounts. In April 2013, government investigators stated the IRS collected more than $5.5 billion under a series of OVDP programs. The success of OVDP is apparent. Under OVDP, taxpayers with hidden... Continue reading →

With the Foreign Account Tax Compliance Act (FATCA) and Offshore Voluntary Disclosure Program (OVDP) under its belt, the IRS is seriously battling tax evasion and using soft and aggressive tactics to increase tax compliance. Tax evasion by hiding money in overseas accounts is widespread. It has been listed fourth in IRS’ 2013 Dirty Dozen Tax... Continue reading →

The best time to resolve back taxes is the right after you discover you owe. If you are able to pay the entire amount in a single payment, which is the easiest method to resolve back taxes, it is highly recommended you do so. However, if you owe taxes of past years as well, or... Continue reading →

Social Security is a promise every American citizen receives from the government for basic survival after retirement. Even though all taxpayers fund Social Security through payroll taxes, the benefits they enjoy may not be equivalent to the amount of taxes they paid, due to their level of income through the years. The Social Security wage... Continue reading →

The IRS says it issues a refund 21 days after submission of a tax filing, but there can be delays due to additional reviews. Taxpayers should review the status of their refund to determine when to expect the funds to reach them. Now, checking the status of your refund has become easier with the IRS’... Continue reading →

Attempting to steal the identities of taxpayers to file false returns and claim huge refunds is a tax crime most taxpayers will encounter during tax season. Identity theft efforts are made both online and offline by identity thieves. Tax frauds use fake websites and unsolicited emails that are exact replicas original IRS and financial institutions... Continue reading →

The top five tax scams that rocked the country in 2012 were identity theft, i.d. phishing, tax preparer fraud, hiding income offshore, and “free money” promises from fake IRS solicitations. Identity theft still rules the number one position on the IRS’ Dirty Dozen tax scams. For 2012, identity theft remained the most prevalent tax scam... Continue reading →