Companies that take advantage of the varied tax laws of different countries to limit their tax payments claim they're maximizing shareholder returns. The result is that US companies hold huge cash reserves in countries with low tax rates.
National Taxpayer Advocate Nina E. Olson cited the need for comprehensive tax reform as the top priority in her annual report to Congress. The report identifies problems facing taxpayers and advises Congress to take significant steps to simplify matters.
New research found that an obscure accounting tool gives US companies the option of omitting from their financial statements, except in footnotes, that any taxes at all are owed to the IRS on profits made by their foreign subsidiaries.
Sean and Nadia Roberts were sentenced July 30 before US District Court Chief Judge Anthony W. Ishii to twelve months and one day in prison for hiding millions of dollars in secret offshore bank accounts.
Ellen Meredith Stubenhaus, previously of Lake Worth, Florida, and later an expatriate living in Costa Rica, was sentenced to sixty months in prison. She previously had plead guilty to conspiracy to defraud the United States.
The Internal Revenue Service has issued its annual Dirty Dozen ranking of popular tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.