Consequences of Not Paying New York Sales Tax

October 10, 2019 Shamsey Oloko Leave a comment New York Sales Tax, New York State Tax, New York State Tax Law, Tax Evasion, Tax Fraud

The State of New York dedicates substantial efforts and resources to ensure that business enterprises pay the sales tax they collect from patrons. Those New York businesses that fail to comply face a myriad of enforcement mechanisms by the New York State Department of Taxation and Finance. The following is a summary of these tools.

Revocation of a business entity’s sales tax license
Closure of the business
Liens, levies, and income execution on real or personal property, bank accounts, wages, and other assets
Personal liability of “responsible persons”
Criminal liability
Penalties and interest up to as much as 14.5%

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Alec Baldwin Accused Of Avoiding New York Sales Tax On Painting Purchase

March 6, 2017 Shamsey Oloko Leave a comment Tax Evasion, Tax Fraud, Tax fraud & evasion, Tax News

Donald Trump certainly has a few tax issues looming over him as he takes over the Oval Office. Alec Baldwin, known for his impersonation of Trump during the months leading up to the election, coincidentally also has an issue regarding the payment of taxes, specifically tax evasion.

In 2010, Baldwin purchased the Bleckner painting “Sea and Mirror” for $190,000. In September of 2016, Baldwin sued New York City art dealer Mary Boone alleging that Boone delivered a similar Bleckner work, but not “Sea and Mirror.” Baldwin alleges in his complaint that Boone promised to obtain the painting from an unnamed collector, but instead delivered a different piece of artwork, also painted by Bleckner. Baldwin is seeking damages measured by the difference between the purchase price of the painting Boone sold him and the current value of the original “Sea and Mirror.”

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Moving To Canada? Here Are Your Tax Consequences

March 1, 2017 Shamsey Oloko Leave a comment FATCA, FBAR, Foreign Earned Income, Foreign Financial Account, Foreign Housing Exclusions & Deductions, Foreign Tax Credit, Tax Evasion, Tax Information Exchange Agreement

After the presidential election, some citizens planned on renouncing their citizenship and moving abroad to Canada, or elsewhere. It would be interesting to survey those who stated this proposition to see if they followed through on their promise (or threat).

The Immigration and Nationality Act applies to U.S. citizens who exercise the right to voluntarily renounce their U.S. citizenship. However, potential relocating Americans must realize that renouncing American citizenship has profound implications on any future return to the United States. Why? Signing an oath of renunciation is an irrevocable act for Americans over the age of 18. Despite this serious implication, the number of individuals that renounced their citizenship in 2015 was eighteen times as many Americans that renounced their citizenship in 2008, which set yet another record for the third consecutive year.

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Seven Deadly Tax Sins

January 10, 2017 Shamsey Oloko Leave a comment Audit, Business Expense, Business Expenses, Charitable Contributions, Child and Dependent Care Credit, Child Tax Credit, Civil Liabilities, Civil Penalties, Collection Activities, Criminal Liabilities, Delinquent Taxes, Dependents, Expenses Deductions, Filing Status, Fraudulent Return, Income Tax, Itemized Deductions, Late Returns, News, Qualified Expenses, Tax Evasion, Tax Fraud, Tax fraud & evasion

7 Deadly Tax Sins

When it comes to the IRS, some bad acts are worse than others. We have compiled below the top ones to avoid at all costs. However, if you should find yourself in the middle of one, you should certainly call tax attorneys to get you out of the bad situation (yes, it is a bad situation).

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Another country, Singapore, is automatically exchanging your Information with the IRS.

January 6, 2017 Shamsey Oloko Leave a comment FATCA, Tax Evasion, Tax Fraud, Tax fraud & evasion, Tax Information Exchange Agreement

In an effort to combat offshore tax evasion, the United States and Singapore have pledged to negotiate and sign by the end of 2016 a tax information exchange agreement (TIEA) and a FATCA intergovernmental agreement (IGA) that provides for the reciprocal automatic exchange of financial account tax information.

The U.S. and Singapore governments issued a joint statement promising cooperation on tax issues affecting both nations. The intergovernmental agreement would provide for the reciprocal automatic exchange of information with respect to certain financial accounts under the Foreign Account Tax Compliance Act (FATCA). The two countries are to complete negotiations and sign the agreements by the end of 2017.

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Moving To Canada After The Presidential Election? Remember Your Taxes

October 26, 2016 Shamsey Oloko Leave a comment Tax Attorneys, Tax Evasion, Tax Filing Deadlines

The U.S. taxes its citizens on all income, regardless of where they live and earn this income. With the impending presidential election, the notion of some citizens renouncing their citizenship and moving abroad to some place like Canada based upon the result regularly appears in mainstream and social media.

The Immigration and Nationality Act provides the details regarding U.S. citizens and their right to voluntarily renounce U.S. citizenship. But renouncing American citizenship is a serious matter as signing an oath of renunciation is an irrevocable act for anyone over the age of 18. The number of expatriates that renounced their citizenship in 2015 was eighteen times as many Americans that renounced their citizenship in 2008, which broke a record for the third year in a row.

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I’m Retired And I Have Tax Debt, What Now? Part 1: Retirement Assets

August 25, 2016 Shamsey Oloko Leave a comment Collection Activities, Debt Forgiveness, Tax Evasion, Tax Fraud

Taxpayers that retire with unpaid tax debt seemingly face a grim retirement because of the thought that assets reserved and necessary for retirement will be taken by the IRS. Here is the first part of our blog on what retired taxpayers may expect in dealing with the IRS regarding certain assets such as retirement accounts.

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The Mitigation Provisions Of I.R.C. §§1311-1314

July 11, 2016 Shamsey Oloko Leave a comment Audit, Income Tax, Internal Revenue Code, Tax Evasion, Taxable Income

While the IRS uses the mitigation provisions of I.R.C. §§ 1311-1314 to reopen a taxpayer’s closed tax year and assesses tax deficiencies, it hardly facilitates taxpayers in using these provisions in similar fashion when seeking a refund from a closed year. Nonetheless, Congress intended that the mitigation provisions ensure that if certain prerequisites are met, either the government or the taxpayer may secure appropriate relief.

The mitigation provisions of I.R.C. §§ 1311-1314 provide a form of statutory relief and apply in certain limited circumstances to claims that are otherwise barred by operation of law or any rule of law like the statute of limitations. The goal of the mitigation provisions is to place the parties in the position they would have been in if the tax item(s) had been properly treated.

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US To Require Banks To Disclose Owners Of Shell Companies

June 27, 2016 Shamsey Oloko Leave a comment Foreign Financial Account, Foreign Tax Credit, Fraudulent Return, Punitive Damages, Tax Evasion, Tax Fraud

In the first week of May, 2016, the U.S. Department of the Treasury announced several actions to strengthen financial transparency and combat the misuse of companies to engage in illicit activities. Treasury announced a Customer Due Diligence (CDD) Final Rule, proposed Beneficial Ownership legislation, and proposed regulations related to foreign-owned, single-member limited liability companies (LLCs). Together, these efforts target key points of access to the international financial system – when companies open accounts at financial institutions, when companies are formed or when company ownership is transferred, and when foreign-owned U.S. companies seek to evade their taxes.

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Red Flags That Attract IRS Auditors

May 12, 2016 Shamsey Oloko Leave a comment Audit, Business Expenses, Charitable Contributions, Civil Liabilities, Civil Penalties, Collection Activities, Criminal Liabilities, Deductions, Earned Income Tax Credit (EITC), Fraudulent Return, Home Office, Income Tax, Representation, Tax Evasion, Tax Fraud, Tax fraud & evasion, Taxable Income

People typically think that the amount of their income is the biggest red flag that attracts an IRS auditor, and they would probably be right. But what are some of the other items on a tax return that may attract their attention? Some say that simple, plain returns are fairly safe and likely to avoid extended scrutiny by IRS auditors. According to the IRS, there are multiple ways a return may end up audited, here are some examples:

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