From the Tax Law Firms of David W. Klasing
It would make sense for the government to expect to reap what it sows. Federal officials anticipate injecting cash into the IRS, and hiring additional agents will generate additional revenue that will eclipse the overall investment in the IRS. The only way this plan comes to fruition is with a much more active and aggressive IRS. If you are concerned about the likely increase in tax code enforcement activity, you may choose to engage in voluntary disclosure, which may protect you from criminal prosecution for blatant past intentional tax non-compliance. or cheating, for short. However, if mismanaged, a voluntary disclosure can do more harm than good to a taxpayer. You should only attempt to engage in voluntary disclosure with the advice of a duplicate California tax defense lawyer and certified CPA.
To note: As long as a taxpayer who has deliberately committed tax crimes (potentially including un-filed foreign information returns coupled with a positive U.S. income tax avoidance on offshore income) self-reports tax evasion (including including a scheme of unregistered declarations) through voluntary national or foreign disclosure before the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can normally be successfully returned to tax compliance and receive an almost guaranteed pass on criminal tax prosecutions and simultaneously often receive a break with civil sanctions that would otherwise apply.
He is imperative that you hire a experienced and reputable criminal tax defense lawyer to support you in the voluntary disclosure process. Only a lawyer has the attorney client privilege and work product privileges that prevent the same professional you hire from being potentially forced to testify against you, in particular when they have prepared the declarations which must be modified, during a tax audit, an investigation or subsequent criminal proceedings.
In addition, only a lawyer may subject you to voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only a lawyer trained in criminal tax defense fully understands the risks and benefits of voluntary disclosures and how to protect yourself if you do not qualify for voluntary disclosure.
As Kovel’s qualified and experienced Criminal Tax Defense, CPA and AE lawyers, our firm provides a one-stop-shop to efficiently achieve optimal and predictable results that simultaneously protect your freedom and your net worth. Check out our testimonials to see what our clients have to say about us!
the California Criminal tax defense lawyers and CPAs holding a dual license in tax law firms in David W. Klasing are very experienced and comfortable taking on the federal government on behalf of our clients on a daily basis. We have a universal understanding of all aspects of the tax code to ensure you are properly advised and protected against all eventualities. You can schedule your first consultation with our offices at a reduced rate by calling us at (800) 681-1295 or by making an appointment online here.
IRS poised for massive expansion, including hiring surge
The White House presented a plan that would double the size of the IRS, through a cash injection of 80 billion dollars more than 10 years. Sponsored by the Treasury Department, President Biden specifically intends to implement these changes to achieve a higher success rate in enforcing tax code violations by top earners.
The plan calls for the introduction of approximately 87,000 new IRS employees over a 10-year period. Workforce expansion would be capped at 15% per year to avoid overburdening the current system, but the announcement of such a high number is clearly intended to scare potential tax evaders into returning to a tax compliance statement.
The estimated annual difference between taxes owed and taxes collected, often due to intentional non-compliance, has increased dramatically in recent years and poses a significant problem for businesses. United States government. This anomaly, also known as the âtax gapâ, implies that recent tax evasion schemes have become so sophisticated that they have to date largely succeeded in avoiding the eyes of the IRS Criminal Investigations Division. (IRS-CI).
Officials suggest this is due to several factors, including the technological backwardness possessed and the antiquated IT equipment used by the agency as well as the crushing burden on the currently understaffed department. That burden only increased during the COVID-19 pandemic, as the IRS was responsible, among other responsibilities, for issuing pandemic relief checks to most Americans.
It is estimated that the popularity and brazenness of domestic and foreign tax evasion schemes, especially those involving offshore entities, would cost the IRS and the federal government significantly more. 500 billion dollars per year. IRS Commissioner Chuck rettig told reporters in March that figure could be shy, and even suggested that the tax gap could currently reach 1000 billion dollars annually.
What does a wave of IRS hiring mean for taxpayers?
Biden’s IRS expansion proposal represents the largest single supplement for the IRS in decades. Rest assured that the Biden administration is not taking this step lightly. They expect a return on their investment. In fact, the administration suggested in announcing the proposal that it expects to recover around 700 billion dollars of unpaid taxes over the next decade.
The only way the federal government can reach this benchmark is to step up enforcement action. In other words, the IRS will have to spend that money to make the money. The money will be used to hire more staff, but it will also be used to improve their technological capabilities to be able to handle higher execution workloads. The money will also end up in tax litigation and lawsuits, allowing prosecutors to build longer and more effective cases against tax offenders.
Will voluntary disclosure protect me from increased IRS enforcement actions?
With the likely increase in tax audits and criminal tax investigations, many taxpayers may be concerned about their past level of tax code compliance. If you are truly concerned about what a tax audit might find out about intentional non-compliance, it may be in your best interest to engage in voluntary domestic or offshore disclosure.
Voluntary Disclosure is a government-implemented program that allows taxpayers who have previously willfully failed in tax compliance with the Internal Revenue Code (IRC) to be honest with the government. A taxpayer may voluntarily disclose additional information about their past tax obligations to clear their name and be honest with their situation and resolve the issue with the government without facing criminal tax prosecution if the terms of the program are strictly followed.
After verifying and evaluating a voluntary disclosure, IRS officials will make a decision on the taxpayer’s actual tax liability, including penalties and interest. Depending on the nature of the non-compliance, the IRS will impose civil penalties, including the civil penalty for fraud, but it may choose to waive or reduce the scale of these penalties depending on the taxpayer’s decision to fully cooperate and the facts and circumstances relating to the taxpayer’s overall compliance record and the nature of any underlying non-compliance.
However, voluntary disclosure is not a viable solution in all cases. In some cases, voluntary disclosure may not absolve the taxpayer from certain criminal conduct and may even involve the taxpayer for the purposes of criminal prosecution. You should definitely have the advice of a tax defense attorney and an experienced dual licensed California CPA before deciding whether to embark on a national or offshore voluntary disclosure program.
Our tax defense lawyers and dual licensed CPAs can protect you today
To the Tax Law Firms of David W. KlasingWe have the experience and resources to strengthen your defenses against the impending attack of IRS enforcement actions. To schedule your initial consultation at a reduced rate, call our office today at (800) 681-1295 or schedule online here.
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Public contact: Dave Klasing Esq. MS-Tax CPA, [emailÂ protected]
SOURCE Taxation Firms David W. Klasing, PC