Federal Income Tax Research Case

There are several options that joint and individual filers can use when it is time to file their taxes. They can file single, married filing separately, Married filing jointly, Head of household, qualifying widow(er) with dependent child. In this situation I would recommend Spouse A and Spouse B to file jointly. They will qualify for 5 exemptions, 2 personal exemptions for themselves, and 3 exemptions for their children because they all live at home and are under the age of 19. They are not able to claim Spouse B’s mother because they were not responsible for more than half of her support for the year. Spouse B’s mother contributed $7920 to the family. The Spouses calculated that they have spent $7000

Ms. Burgos related that her mother does not speak English and that she would act as an interpretator. Ms. Burgos advised that her mother received correspondence from the IRS dated 04/06/2016, informing her of an adjustment and refund due to her in the amount of $2,104.00 from income taxes filed on 04/15/2014 .

“Have you ever had a little brother or sister go through all of your belongings and find money and end up stealing it, knowing they were doing wrong. Just because this happened to you when you were younger does not mean that it can not happen to you when you are an adult. A Boston-area psychiatrist, for example, forfeited $1.3 million and was sentenced to several years in federal prison following his late-1990s conviction on 136 counts of mail fraud, money laundering and witness intimidation related to his fraudulent billing of several health insurers for psychiatric therapy sessions that never took place-using the names and insurance information of many people whom he actually had never met, let alone treated. (He also went so far as to write fictitious longhand session notes to ensure phony backup for his phony claims.)”(Webinar) Fraud is something that can happen on any level where a crime can be committed by a person, knowing they are doing it and still getting away with it or by accident knowing that their actions were innocuous, either way fraud is fraud and as sad as it is to say, it happens every day by millions of people, not just the IRS. “Few attempts have been made to actually see how

I checked in the system to find the tax return for 2014 for that couple. I found that the only difference was the child credit. I asked, “when did your child turned 17.” They said, “last year on November,” I told them one of the requirements to receive the child credit, is that the child needs to be under 17 years old. The accepted the amount owned, after I find the reason what they owned the money to the IRS.

a.) If a taxpayer omits an amount of gross income in excess of 25 percent of the gross income reported on the return, the statue of limitation is increased to 6 years . So I will explain Andy that the IRS is not barred from accessing his income if he is audited. Also , there is no statue of limitation on cases that involve fraud. Fraud involves specific intent on the part of the taxpayer to evade a tax. Since Andy is aware that he has omitted this amount,it would be fraudulent not to report it.

As we have learned in Scenario # 4, Jeff and Elena file as MFJ, combining their income and forms 1095-A. Since Elena got married during the year she wants to claim the “Alternative Calculation” on Form 8962 for months prior to the marriage. She doesn’t want to pay back the $138 calculated in Scenario #4.

Whether or not the bank was correct in its understanding of the tax implications of the decision to proceed with a personal loan, the fact is that, that is what they did. I have serious doubts as to whether we will get much traction out of a claim that the bank misunderstood the tax implications of the transaction. I believe that the strategy must be much more closely focused on the fact that the documentation was(for the second) submitted to Jill Mitchell for execution on the basis of a misrepresentation of fact(fraud in the execution) as to what the documentation was intended to

Their records indicate that nearly 20 million potentially fraudulent refund claims, involving more than $60 billion, have been detected and stopped over the past four years. Having so many cases of fraud each year has made tax fraud the third largest theft of federal funds after Medicare/Medicaid and unemployment-insurance fraud. (Speer, 2015) Each year from January until April, thieves and scammers use different ways to obtain bogus tax refunds. Since the end of the 2012 tax filing season, the IRS has nearly doubled the amount of investigators assigned to work identity tax fraud and prosecute thieves, but even with investigators more than $5 billion fraudulent refunds were paid out in 2013 and is that amount is forecasted to grow, potentially reaching tens of billions of

What can you do if you file your taxes and discover that someone has already received your reimbursement? Last year (2016), the IRS reported a $21 billion charge to Americans due to tax fraud. Individuals who have fallen prey to tax fraud may find themselves in a compromising situation if they were counting on that money to cover personal expenses. Even though the victim will not be accountable for committing fraud, it usually will take 9 months to investigate and for the victim to receive their tax return. Who do you think pays for the cost of the investigation? We do, the taxpayers.

Embezzlement is theft or misappropriation of funds placed in someone’s trust or belonging to an employer. Embezzlement is also considered a white collar crime in which it also includes theft and misusing of anyone funds, Embezzlement occurs when a person entrusts their property to another person, but the person who in possession unlawfully takes ownership with the intent to defraud the original owner. Misusing accounting is one factor in majority of the embezzlement cases. Here is one example of embezzlement is where an employee is over a certain amount of company money. The person then has lawful possession of the funds if they put the money into a different account for their own personal use, it can be considered embezzlement. The difference

The media attention this scandal has received has sparked an ongoing debate on the role of the IRS moving forward. As new information is surfacing, the conversation is continuously changing. In October of 2015, after over two years of investigation Lerner and the IRS were not found to be guilty. Assistant Attorney General Peter Kadzik noted, “Our investigation uncovered substantial evidence of mismanagement, poor judgment and institutional inertia, leading to the belief by many tax-exempt applicants that the IRS targeted them based on their political viewpoints. But poor management is not a crime.”

There have been many famous tax fraud cases over the years. The ability of individuals to consistently find ingeniously creative ways of committing tax fraud, especially with the magnitude of rules and regulations concerning tax, is astounding. Every year there are thousands of instances of tax fraud schemes taking place, accounting for billions of dollars of lost revenues for the IRS. In 2011 alone, the IRS reported roughly 2 million potentially fraudulent tax returns out of over 145 million tax returns filed.(htt) In addition to highly sophisticated tax fraud schemes, sometimes very simple schemes are able to exist without interference. Of the approximately 2 million fraudulent tax returns filed in 2011, identity theft accounted for about 450,000. (htt)

The Innocent Spouse Relief can be requested when a spouse requests relief from tax, interest, and/or penalties if the other spouse has hidden income from her and she did not know about the omission in the business income . In order to qualify for innocent spouse relief, the spouse requesting relief has to meet certain conditions. The conditions are as followed: requesting spouse filed a joint return, there is an understated tax on the return due to erroneous items of the former spouse, can show that when signed return the requesting spouse did not know that the understated tax existed, and it would be unfair to hold liable for the understated tax . The IRS will investigate to make sure an innocent spouse did not know about the hidden income using certain factors . On the IRS website the factors were stated as “Whether the wife received a significant benefit from the understated tax, whether the spouse deserted her, whether the wife or husband have been divorced or separated, and whether the wife received a benefit on the return from the understated tax.” In this paper, concealment of income will be discussed using court cases including: Wilson v. Commissioner of Internal Revenue,

The IRS audits tax returns when it is more likely that it will have errors. The problem is that the IRS cannot audit all of the public audits because that would take a lot of time and money. Usually, the IRS audits people with the higher income than lower income. In this case, it was a higher income that commits fraud, so I am thinking to myself that if this person with higher income could evade the tax law, those people in the middle or low income might evade the law and the IRS do not notice. In this case, the IRS performed a field audit in which financial information is checked review to ensure that the information is reported correctly according to the tax laws.

An employee of my client company, Saudi Airline Catering (SAC), embezzled $24,300 through a scheme that had gone undetected until discovery by an accountant after this employee made a claim that Saudi Airlines had deducted $6,000 from his salary. The employee, Adam, was not approached by SAC about the embezzlement to pay the money back. Instead, a spokesperson for SAC claimed that this employee would likely refuse to acknowledge his criminal behavior, so my client, SAC, decided to go ahead and try to recoup the money through deducting it from his salary. In addition, SAC intended to black list Adam from procuring commissions for sales on future SA flights because of his embezzlement crime. Yet, when suggested that SAC pursues a legal action against Adam, SAC declines to pursue the matter in a Saudi courtroom because of the supposed hassles entailed in doing so and the length of time it would take to convict Adam of this crime and force him to repay the money he stole from SAC. However, by taking this suggested action, it is evident that Adam will possibly take up a lawsuit against SAC for deducting that amount of money from his salary and blacklisting him from receiving any future sales commissions. In addition, this employee may charge SAC with any number of violations of their legal relationship by seizing this kind of money from his salary and suspending his sales commissions based on the assumption that he embezzled the money. If this legal development