Feds Sue Tax Preparers for Fraud

Christopher Beam explores the potential evader's options

(NEWSER) - With millions of Americans enduring long lines at the post office today to file their tax returns, Christopher Beam of Slate can’t help wonder: What would happen if you simply didn’t file? The answer is probably not much—7 million Americans declined to file last year, and only 158,000 of them were investigated—although certain factors increase your chances of being an IRS target. More»

(NEWSER) - Aiming to avoid an ugly international dispute, the US government, Switzerland, and a Swiss bank are seeking to delay a hearing over private bank accounts, the Wall Street Journal reports. The respite would give government officials and UBS until August to strike a deal over data on some 52,000 alleged US tax evaders. The Justice Department and IRS want it; UBS and Switzerland say handing it over would violate Swiss law. More»

Service expects to refund $7-$10 billion in taxes paid on fake income

(NEWSER) - The work of fraudsters such as Bernie Madoff and R. Allen Stanford will complicate the IRS’ job as tens of the thousands of victims attempt to reclaim taxes paid on income that went up in smoke, Time reports. The IRS estimates that refunds due victims to Madoff alone could total up to $10 billion, but the agency has yet to issue clear guidelines for recouping funds. More»

Bill limits pretax earnings managers can invest in their offshore funds

(NEWSER) - The Senate has an eye on extraordinary tax breaks that have allowed hedge fund managers to sock away hundreds of millions of dollars tax free, using their funds like giant pension schemes, the Times reports. Managers who run offshore funds can re-invest earnings in their own funds, deferring taxes for 10 years or more. More»

The upper crust is using alpaca farming as a huge tax write-off

(NEWSER) - Some very ulikely agrarians—doctors, lawyers, computer programmers—have spurred a huge boom in alpaca farming in the last few years, not for the profits, of which there are rarely any, but for the huge tax write-offs. "What can't I write off?" Manhattanite Rob Bruce says. "I write off food, water, fences, the guy who cuts the lawn." More»