The Internal Revenue Service was recently granted a tax collection power that may surprise readers: passport restrictions.
Former professor convicted of tax evasion for offshore accounts
A former university professor was recently convicted and sentenced on tax evasion charges. The man will have to serve seven months in federal prison and pay $100 million in fines. Upon his release, he will be supervised for one year.
Does the IRS pay closer attention to partnerships?
A majority of workers have federal, state and FICA taxes withheld from their paychecks. The withholding consists of the employee’s contributions and the employer’s matching share. For those who are self-employed or receive payments via a Form 1099, however, there are no withholdings. Instead, such professionals pay estimated taxes four times each year.
Does the IRS have special summons power to investigate you?
The power of the IRS summons might surprise you. Whereas a warrant request typically must name a specific person, the IRS has been allowed to request a summons for a whole category of taxpayers, without specifically naming them. The so-called John Doe summons, issued to IRS examiners, allows the IRS to obtain the names of individual taxpayers.
