More Tax Evaders Face New $5 K Fine

Unhappiness about the Iraq War is prompting more Americans to protest by not paying their taxes, even though a new law ups the ante for tax evasion from $500 to $5,000. Despite the threat of criminal prosecution, reports AP, some 8,000 to 10,000 are protesting the war by refusing to…

Jul 5, 2007 10:21 PM CDT

Tax Shelter Probe Points to More Attys

It isn’t just Sidley Austin and the now-defunct Jenkens and Gilchrist that come to mind these days when one thinks of the federal investigation of allegedly abusive tax shelters. Other law firms names, too, are in the news for those who are following the sprawling tax shelter investigation brought by…

Jul 4, 2007 12:10 AM CDT

NY Attorneys Failed to File Tax Returns

Four lawyers are among seven professionals who recently pleaded guilty to misdemeanor charges of failing to file New York state tax returns. The four attorneys, who earned between just under $400,000 and more than $2.7 million during the period, did not file state tax returns for four consecutive years, according…

Jul 3, 2007 9:52 PM CDT

Tax on Emotional Damages Upheld

A federal appeals panel has reversed course and upheld the power of the federal government to tax an award for emotional distress. The U.S. Court of Appeals for the D.C. Circuit ruled today that Congress has the power to impose the tax under Article 1, Section 8 of the Constitution.…

Jul 3, 2007 8:08 PM CDT

High Court Declines Tax Case

The U.S. Supreme Court yesterday refused to hear an appeal seeking to exempt an out-of-state business from income and franchises taxes in West Virginia. MBNA, the credit card unit of Bank of America, had no physical presence in the state. An appeals court ruled it was nonetheless subject to the…

Jun 19, 2007 5:28 PM CDT

Filing Error Costs Gov’t $100 M Tax Bill

Oops. After winning a tax evasion case against a man described as the biggest tax evader in U.S. history, federal prosecutors made a mistake. They cited the wrong statutory language in a written plea agreement with telecommunications entrepreneur Walter Anderson, reports AP. And that means the government can’t recover some…

Jun 19, 2007 1:07 AM CDT

Diplomatic Property-Tax Case Allowed

The U.S. Supreme Court ruled today that foreign governments are not immune to suits for payment of local property taxes. “Property ownership is not an inherently sovereign function,” said the majority opinion by Justice Clarence Thomas. The court ruled 7-2 for New York City, which is seeking back property taxes…

Jun 14, 2007 4:06 PM CDT

Misconduct Cited in KPMG Motion

Ex-employees of KPMG cite a “pattern of misconduct” by the government in their motion to dismiss the criminal case against them.

They contend comments by prosecutors at a February 2004 meeting put pressure on their employer to cut off legal fees, according to the New York Law Journal. The employees had been accused of helping create illegal tax shelters.

Jun 12, 2007 12:27 PM CDT

IRS Acts After IBM Saves $1.6 Billion

The Internal Revenue Service has moved to close a loophole that saved IBM $1.6 billion in income taxes. The agency will issue regulations requiring companies to pay taxes on stock repurchases by international subsidiaries, the Wall Street Journal (sub. req.) reports. That will make the earnings subject to U.S. tax…

Jun 7, 2007 3:29 PM CDT

Lawyer, Big Four Partners Charged in Tax Fraud Scheme

A former lawyer for the Internal Revenue Service is among four past and present partners of Ernst & Young charged today in an alleged tax fraud scheme intended to benefit wealthy clients and earn big fees. Robert Coplan, 54, a Texas lawyer who once worked for the IRS Legislation and…

May 30, 2007 8:26 PM CDT

Sidley Austin to Pay $39 Million

Chicago-based law firm Sidley Austin has agreed to pay $39.4 million to avoid prosecution in a tax-shelter case. The government claims the shelters, endorsed by a former partner, are sham transactions created only to create paper losses and tax savings. The firm acquired its tax-shelter problems when it merged with…

May 24, 2007 5:42 PM CDT

Lawyer Loses Claim for Mormon Tax Exemption

A federal appeals court has rebuffed a Las Vegas lawyer who said he should not have to pay Social Security taxes because of his Mormon religion. Jonathan Hansen told the Wall Street Journal (sub. req.) he views the tax as “satanic.” “I belong to a religion that will take care…

May 8, 2007 3:03 PM CDT

IRS Eases Up on Offshore Tax Havens

A report to be released today finds that Internal Revenue Service agents are cutting back on audits of offshore tax havens because they can’t meet the deadline to complete such investigations. The report by the Government Accountability Office says “dilatory tactics” by offshore taxpayers make it difficult to complete an…

May 3, 2007 1:37 PM CDT

Crisis Pending

Can a patent on a legal strategy prevent a client from taking your advice? The courts may soon decide.

May 1, 2007 10:25 AM CDT

$41,000 Gas Claim Lands Tax Preparer in Court

The U.S. Justice Department claims a Dallas man took $900,000 in fraudulent tax credits on returns he prepared for others since 2006, according to the Dallas Morning News. A DOJ complaint alleges Farai Mushaninga claimed one woman bought more than 19,000 gallons of gasoline for business reasons, which would have…

Apr 26, 2007 7:10 PM CDT