2-3-12 Robert E. McKenzie USA Today Quote on Wegelin Bank Indictment for Helping Americans Hide Money Offshore
Robert E. McKenzie comments for Accounting Today on IRS 2012 offshore initiative
On January 11, 2012 National Taxpayer Advocate Nina E. Olson released her annual report to Congress, identifying the combination of the IRS’s expanding workload and declining resources as the most serious problem facing taxpayers. The result, the report says, is inadequate taxpayer service, erosion of taxpayer rights, and reduced tax compliance. The Advocate expressed her continuing concern that the IRS’s expanding use of automated processes to adjust tax liabilities is causing harm to taxpayers and recommended that Congress enact a comprehensive Taxpayer Bill of Rights.
On January 9, 2012 the Internal Revenue Service reopened the offshore voluntary disclosure program to help people hiding offshore accounts get current with their taxes and announced the collection of more than $4.4 billion so far from the two previous international programs.
McKenzie Quoted on Offshore Accounts by Wall Street Journal MarketWatch.
On January 6, 2012 he Internal Revenue Service released a new set of tax gap estimates for tax year 2006. The tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time.
In April the Justice Department filed a lawsuit that sought to force HSBC India to reveal the names of U.S. customers with secret accounts, and a U. S. District subsequently granted the IRS authority to issue John Doe Summons for the names of U. S. residents of Indian descent who have had NRE accounts (Non-resident External Rupee Accounts) at the bank.
Foreign Account Tax Compliance Act (FATCA) Explanation of Section 6038D Temporary and Proposed Regulations Custom Search _______________________________________________________________________________________________ The Foreign Account Tax Compliance Act, enacted in 2010, created new IRC Section 6038D and requires individuals to file a statement with their…
A tax practitioner is frequently confronted with the following question when giving a client a return with a balance due on it: “Should I file the return right now, or wait until I have the money to pay it?”
The answer is very simple. File it as soon as possible! If your client has any money at
all available for payment, it should be enclosed with the return. The reason for such
advice is that one of the largest penalty rates which the IRS is allowed to impose is for
late filing of a return. The penalty is five percent per month, up to a maximum, of 25%, of the tax due but unpaid by the due date of the return, which works out to be an annualized rate of 60%. Therefore, if your client fails to file the return on time there is an effective annual rate of interest in excess of 75% when you add interest and. late payment penalty. The late payment penalty after notice, on the other hand, is one percent per month, or an effective rate of 12% per year in addition to statutory interest. One1 drawback of filing a timely return without remittance is that the IRS will arrive at the taxpayer’s door to collect the liability much sooner than if he or she files a return late. However, the additional cost for penalties incurred to gain this time is prohibitive.
Robert E. McKenzie Quoted in Accounting Today on Worker Classification Issues