The former mayor of Hialeah and his wife have been accused of tax evasion by the federal government. It is claimed that the two received cash payments as interest for more than $1 million in loans that they made to personal acquaintances.
It appears that the couple will be charged with working together to defraud the United States, filing of false tax returns, and the making of false statements to government investigators. For each charge, the couple faces up to five years imprisonment.
No one should pay more in taxes than they are required to by law. Understanding what is required, however, is something that can be difficult to determine. Tax law in Florida and for the nation as a whole becomes more complex year by year, which is why consulting with an experienced attorney can be so crucial to obtaining the best possible outcome when trying to resolve issues related to alleged tax debt liability.
Many times, the circumstances that lead a person to fall behind on tax obligations develop and get out of hand. There may be no intent on the person's part to evade the liability. Perhaps the loss of a career has thrown the individual for a loop. Such upheaval can send a person into an emotional and financial tailspin that's hard to pull out of. Addressing tax matters can easily slip into last place in terms of things to worry about.
Expect friction between the two state houses in Florida to continue for years to come concerning tax policy. Though the Florida Senate has been proposing various measures to eliminate what are referred to as tax breaks, the Florida House has been less inclined to see these tax breaks go.
For example, Florida Senate Bill 1852 would have eliminated $220 million in tax breaks for the insurance industry that were originally implemented in the tax code back in 1987. However, it appears the House has decided not to implement this measure as a part of a tax compromise. At the same time, the Senate has been successful in eliminating incentives for foreign banks.
For most Florida residents, online shopping has likely become second nature - an easy way to obtain needed items from the comfort of your own home. One of the benefits for people shopping online - which some people may not be familiar with - is that in many cases, they are not required to pay sales tax on their purchases.
Currently, if a business does not have an actual physical presence in the state, they are not required to charge sales tax on online purchases. The proposed legislation would require online retailers to charge sales tax regardless of whether they have stores located in the state. Under the bill, sales tax collected from online purchases would then be distributed to the state in which the consumer resides.
Government spending cuts have affected a number of federal agencies including the Internal Revenue Service. The IRS alone has been asked to cut $600 million from its budget this year. The IRS is concerned that the budget cuts could drastically interfere with their abilities to collect revenues from offshore accounts.
In recent years, the IRS has worked to recover tax revenues by implementing amnesty programs that target individuals with money hidden in bank accounts in other countries with minimal tax rates. Since 2009, around $5.5 billion has been collected. However, with fewer resources, the IRS will have a harder time collecting what is owed to them.
By now, Florida residents should have submitted their tax returns. Unfortunately, some people, about one in 100, will be selected for an audit.
Hollywood residents and others elsewhere who are selected for an audit by the Internal Revenue Service should know that ignoring notification of an audit is a bad idea. People should respond accordingly and are given a 30-day window to do so.
The use of social media has become increasingly more common in Florida and beyond. Most people check their social media accounts on a daily basis. Social media is a great place for people to showcase their adventures, but could the Internal Revenue Service be using people's online posts against them in an effort to combat tax evasion and other tax crimes?
In terms of audits, the IRS says they only use the information in an individual's tax return. They claim they do not target people for audits using information on their social media pages. However, could the IRS be using social media accounts to learn more about people who are already flagged for an audit?
The Internal Revenue Service conducts audits every year. Florida residents should know that an audit does not necessarily mean that a taxpayer did something wrong. It only means that the IRS wants to take a closer look at an individual's tax filing to be sure accurate information has been provided.
Close to 1.5 million individual tax returns were audited by the IRS last year. That's about 5 percent less than the year before. Although fewer audits were conducted last year, the IRS says people who made more than $200,000 were actually more likely to face an audit.
Florida residents may agree that receiving a large tax refund can feel a little like winning the lottery. It's money that wasn't previously accounted for but suddenly lands in the hands of taxpayers.
The Internal Revenue Service says that a majority of people receive tax refunds. Some people end up with close to $3,000. Although getting the refund check in the mail is quite exciting, some people say it shouldn't be viewed in such a positive light because it means that an individual overpaid the government, and that money could have gone to better use.
Paying taxes is something that nearly all Florida residents do. Although some people may not agree with how much they are taxed, looking for ways to avoid tax liabilities can be dangerous.
During tax season, the Internal Revenue Service sees a number of tax scams. For instance, people may be lured into a tax scheme by being promised that they will not have to pay taxes by reducing their taxable income to zero. They may be told to fill out Form 4852. However, doing this can lead to a $5,000 fine.
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As heard on American Airlines' "Best Lawyers in America" Series February 2005
Zuckerman & Mata, L.L.C.
IRS and Florida DOR Tax Lawyer
Estate Planning Attorney
601 S. Ocean Drive
Hollywood, FL 33019
Phone:954-922-1975
Toll Free: 800-717-6974
Fax:954-922-1976
