We are in the thick of tax season and everyone is scrambling to get their paperwork done. Some individuals may have started at the beginning of the year while others wait until the last minute to do their paperwork. Whichever way you do it, it’s important that the information on your tax papers is accurate and honest. It may be helpful to work with a professional on your tax returns in order to have some peace of mind that the information is sound.
It goes without saying that Michigan taxpayers want to avoid criminal tax consequences. Such charges require immediate attention because the penalties can impact your finances, career and reputation. The penalties for tax crimes include fines, asset forfeiture and possible prison time. A conviction could mean the loss of a professional license and difficulty in obtaining employment concerning certain types of occupations.
Whistleblowers receive financial awards for reporting on alleged violations of the federal tax code. This may be good news to whistleblowers, but it can be bad news for those wrongly accused of tax evasion.
As a general rule, we do not hold people accountable for the wrongdoing of someone else. This is true even if you happen to be married to the wrongdoer and you filed taxes jointly with that individual.
Michigan business owners have understandable concerns regarding health insurance requirements for employees. The reporting requirements are practically endless. And even the failure to follow specific Affordable Care Act requirements can result in tax consequences.
While one commentator feels a recent ruling from the U.S. Tax Court case is "good news," many taxpayers will not feel the same. (The commentator, by the way, also happens to be the lead attorney representing the whistleblowers in the case. These are whistleblowers accusing taxpayers of wrongdoing.)
A 10-month long investigation culminated in 11 felony charges that included wage theft and tax fraud. Allegedly, the construction company failed to pay their taxes. They also apparently failed to pay workers' compensation insurance premiums.