Hiding assets to avoid paying taxes can come with a hefty price. A former University of Rochester professor learned that.
The Internal Revenue Service has taken a considerable number of steps in the past few years to combat tax fraud and identity theft. Losses due to fraud in 2013 and 2014 totaled nearly $9 billion.
Many taxpayers rely on electronic software or a professional tax preparer to help them complete their income tax returns. However, in order for your return to be free of errors, you still must provide the correct information. As they say, "Garbage in, garbage out."
Most people haven't even begun thinking about filing their 2016 tax returns yet. However, the Internal Revenue Service has already announced changes to the U.S. tax code for 2017. These won't impact the tax returns you file this April. However, it's a good idea to be aware of them as you go into the new year. This can help you make financial decisions that will minimize your tax burden and also help you prevent running afoul of the tax laws.
As Americans increasingly file their taxes online, identity theft has become a growing issue. People are stealing taxpayers' identities, filing false returns and obtaining refunds of money not owed them (or the taxpayer). State and federal authorities, including the Internal Revenue Service, have been working diligently to prevent these fraudulent returns from going through and catch those who are guilty of this type of tax fraud.
The man who runs Wings Over Ithaca has been charged with 26 counts of felony sales tax evasion. The 47-year-old Massachusetts man recently pleaded not guilty to the charges against him in Albany City Court.
If there's one thing that unites Americans, even amid a highly-contentious presidential election, it's the fear of an audit by the Internal Revenue Service. Realistically, your chances of being audited are very slim and dropping. Fewer than 1 percent of filers were audited for the tax year 2013. With budget cuts, the resources available to conduct audits are becoming scarcer.
A father and son have been indicted for failing to pay over $1 million in sales taxes between 2011 and 2014 for the three Nassau County BP gas stations they own. They both could serve years in prison.
A 57-year-old New York pharmacist is facing over three-and-a-half years in prison for tax and health care fraud. The New City man ran pharmacies in the Bronx, Queens and Rockland. Additionally, he was ordered to pay $2.7 million in restitution to the Medicaid and Medicare programs, $736,000 in restitution to the Internal Revenue Service and to forfeit $2.7 million in proceeds from the $5 million in prescriptions he claimed to have filled throughout 2011 and 2012, but didn't.
Many people who violate tax laws don't do so intentionally. They may not be aware of current laws. After all, the Internal Revenue Service makes changes every year. This year is no exception. Lawmakers have until the end of the year to decide whether certain tax provisions will be renewed, so it's essential to know the current tax laws if you're doing your own taxes.