Retired US Tax Judge indicted for tax fraud - $400,000 worth

U.S. Attorney Andrew M. Luger for the District of Minnesota today announced a federal indictment charging Diane L. Kroupa, 60, and her husband, Robert E. Fackler, 62, with conspiring with each other to evade assessment of taxes. Each defendant is charged with conspiracy, tax evasion, making and subscribing false tax returns and obstruction of an Internal Revenue Service (IRS) audit. The defendants are expected to appear later this week in U.S. District Court in Minneapolis, Minnesota.

Article here (via taxprof).

Tax time quiz: Are you likely to be audited?

Audit!

Sorry,  I didn't mean to scare you.

Something to think about when you file your taxes: if you have something that the IRS might ask questions about, do you have a reasonable explanation for it? Maybe you do, but think about the possibility of being audited.

This article (via taxprof) talks a little about who is likely to be audited: typically the highest and lowest earners.

Something else to think about: maybe you know someone who hasn't paid their taxes. You might be able to get an award for letting the IRS know that he or she hasn't filed. It's called a whistle blower award. The catch is that you might have to wait years to get the award. More information here. One more catch: you need to give information that's more than just a hint, or suspicion that someone isn't paying.

Ways to cut your taxes by year-end

Here are key areas to focus on before year-end.

• Adjusted gross income
• Investment gains and losses
• Charitable giving
• Alternative minimum tax
• Medical costs
• Health insurance
• Tax-free gifts for education or other purposes
• Tax-preparation costs

Article here (via taxprof blog).

 

What companies are using off-shore tax havens? How much do they claim they have there?

Companies who voluntarily reported what they held in off-shore countries (that are often viewed as tax havens since US taxes aren't paid there).

Article here (via taxprof blog).

Jail time for attorney who claimed tax law expertise

A Hawaii personal injury attorney who advertised his tax law expertise has been sentenced to 20 months in federal prison for understating his income on his own 2006 return.

Article here. 

He earned about $630,000 in 2006, but told the feds his gross income was a little under $300,000, according to the Associated Press.