Irvine, California., August 3, 2021 / PRNewswire / – President Joe Biden is wasting no time empowering the IRS with an additional staff influx slated for the next decade. The proposal is part of a larger package that includes: $ 80 billion for the department in the same period. With such a significant increase in performance, one could reasonably wonder whether further enforcement of tax legislation can be expected in the coming months and years.
It would only make sense if the government expected to reap what it sows. Federal officials predict that injecting money into the IRS and hiring additional agents will generate additional revenue that will dwarf the total investment in the IRS. The only way this plan comes into play is with a much more active, aggressive IRS. If you are concerned about the likely increase in tax enforcement, you can opt for voluntary disclosure that can protect you from criminal prosecution for gross willful tax fraud or, for short, fraud. However, if handled incorrectly, a voluntary disclosure can do more harm than good to the taxpayer. You should only try to participate in a voluntary disclosure under the guidance of an experienced dual California Licensed attorney for criminal tax law and auditor.
Note: As long as a taxpayer who has intentionally committed tax crimes (including possibly including undelivered foreign information returns related to positive U.S. income tax evasion on offshore income) reports the tax fraud himself (including a sample of undelivered tax returns) through a domestic or offshore voluntary disclosure, before the IRS has initiated a tax audit or criminal tax procedure, the taxpayer can usually be successfully returned to tax compliance and receive a near-guaranteed pass to tax prosecution and at the same time often an interruption of the civil penalties that would otherwise apply.
It is imperative that you hire an experienced and reputable tax criminal defense attorney to guide you through the self-disclosure process. Only an attorney has the attorney client privilege and the work product privilege, which prevents the specialist attorney you hired from possibly being forced to stand as a witness against you, especially if he created the declarations to be changed in a subsequent criminal tax review, investigation or prosecution.
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In addition, only a lawyer can make you voluntarily disclose it without engaging in the illicit exercise of the law (an offense in itself). Only a lawyer trained in criminal tax law understands the risks and rewards associated with voluntary disclosures and how you can protect them if you are not eligible for voluntary disclosure.
As uniquely qualified and highly experienced tax attorneys for criminal tax law, Kovel CPAs and EAs, our law firm offers a one-stop-shop to efficiently achieve optimal and predictable results while protecting your freedom and assets. Check out our testimonials to see what our customers have to say about us!
That California Double admission as a tax defense lawyer and auditor at the tax offices of David W. Klasing are very experienced and comfortable in their daily dealings with the federal government on behalf of our customers. We have a universal understanding of all aspects of the tax code so that you are properly advised and protected against all eventualities. You can schedule your first consultation in our offices at a discounted rate by calling us at (800) 681-1295 or making an appointment here online.
IRS is facing massive expansion, including hiring course
The White House has unveiled a plan that will increase the size of the IRS by injecting cash. would double $ 80 billion over 10 years. Sponsored by Finance, President Biden specifically plans to implement these changes to increase the rate of success in enforcing tax violations by the highest income earners.
The plan envisages the induction of approximately 87,000 new IRS employees over the 10-year period. The increase in staff would be capped at 15% annually so as not to overwhelm the current system, but announcing such a high number is intended to deter would-be tax evaders so that they can return to a state of tax compliance.
The estimated annual difference between taxes owed and taxes collected, often caused by willful non-compliance, has increased dramatically in recent years and is a significant problem for The United States Government. This anomaly, also known as the “tax loophole”, implies that recent tax evasion programs have been so sophisticated that they have so far been largely successful in evading the eyes of the IRS’s Criminal Investigations Division (IRS-CI).
Officials suspect this is due to several factors, including the lagging tech-savvy and obsolete computer equipment used by the agency, as well as the overwhelming burden the currently understaffed department carries. That burden only grew during the COVID-19 pandemic, as the IRS was tasked with issuing pandemic relief checks to most Americans, among other things.
It is estimated that the popularity and audacity of domestic and offshore tax evasion schemes, especially those involving offshore companies, will cost the IRS and the federal government far more $ 500 billion per year. IRS commissioner Chuck Rettig told reporters in March that number might be timid, and even suggested that the tax gap might be as large as currently $ 1 trillion yearly.
What Does an IRS Hiring Tour Mean for Taxpayers?
The Biden IRS extension proposal represents the largest single addition to the IRS in decades. Rest assured that the Biden government is not taking this step lightly. They expect a return on their investment. In fact, when the government announced the proposal, it suggested that they expect an approximate payback $ 700 billion in unpaid taxes for the next ten years.
The only way the federal government will achieve this benchmark is through increased enforcement measures. In other words, the IRS has to spend that money in order to make money. The money will be used to hire more staff, but also to improve their technological skills to cope with higher enforcement tasks. The money will also go into tax litigation and law enforcement, allowing prosecutors to launch longer and more effective trials against tax offenders.
Does Voluntary Disclosure Protect Me From Increased Enforcement Action From The IRS?
With tax audits and criminal tax investigations likely to increase, many taxpayers may be concerned about past tax compliance levels. If you are seriously concerned about what a tax audit could reveal of willful non-compliance, it may be in your best interest to voluntarily disclose it domestically or internationally.
Voluntary Disclosure is a government implemented program that enables taxpayers who have previously intentionally breached the Internal Revenue Code (IRC) tax compliance to get along with the government. A taxpayer can voluntarily disclose additional information about their past tax liability to clear their name and explain their situation and get on with the government without prosecution if the terms of the program are strictly followed.
After reviewing and evaluating a voluntary disclosure, the IRS officials will make a decision about the actual taxpayer’s outstanding tax liability, including penalties and interest. Depending on the nature of the non-compliance, the IRS will impose civil penalties, including the civil fraud penalty, but may be based on the taxpayer’s decision to fully cooperate and the facts and circumstances relating to the taxpayer’s overall record of compliance and the nature of the underlying non-compliance.
However, voluntary disclosure is not a viable solution in all cases. In some cases, voluntary disclosure may not absolve the taxpayer of certain criminal conduct and may even involve the taxpayer for prosecution purposes. It is imperative that you seek the advice of an experienced dual licensed California criminal defense attorney and CPA before deciding whether to participate in any domestic or offshore voluntary disclosure program.
Our dual licensed tax defense attorneys and accountants can protect you today
At the tax offices of David W. Klasing, we have the experience and the resources to strengthen your defenses against the looming onslaught of IRS enforcement actions. To arrange your initial consultation at a reduced price, call our offices today at (800) 681-1295 or make an appointment online here.
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Public contact: Dave Klasing Esq. MS Tax CPA, [email protected]
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