The fallout from the financial crisis of 2007-8, HSBC Suisse in 2015, and the Panama Papers in 2016 has generated calls for far more vigorous and punitive responses to tax evasion and greater international co-operation against mechanisms for giving anonymity to the ownership of property. One mechanism to ensure compliance is the use of the criminal justice system. The announcement in 2013 by the then Director of Public Prosecutions, Keir Starmer, of a policy of increasing rates of prosecution for tax evasion raised squarely the issue of whether increased involvement of criminal law and criminal justice in tax evasion would be justifiable or not. The relationship between tax evasion and the proceeds of crime is taking on increasing importance: treating the 'proceeds of criminal tax evasion' as falling within the 'proceeds of crime' regime inevitably expands the scope of both. In this book, Peter Alldridge considers the development of the offences and the relationship between tax evasion offences and other criminal offences; the relevant rules of evidence; prosecution structures, decision-making processes, and alternatives to prosecution. Specific topics include offshore evasion and the relationship of tax evasion with other crimes and aspects of the criminal justice system. A topical and lively discussion of a heated debate.

Taxation of Loan Relationships and Derivative Contracts, Tenth Edition, is updated in line with the Finance Act 2015 which brings in significant changes to the loan relation rules. In addition, it includes changes to both UK and International Accounting Standards. This new edition covers developments in the Basic Erosion and Profit Shifting (BEPs) project and the related new climate and wider concept of tax avoidance (GAAR). The chapters covering accounting framework, reorganisations and international aspects have been significantly updated since the previous edition and new chapters have been added with a summary of all relevant cases and a chapter covering Islamic Finance. Covers the following: The Taxation of Finance Accounting under IFRS and Modified UK GAAP The Scheme of the Legislation Loan Relationships: Scope and Definition Loan Relationships: General Computational Provisions Loan Relationships: Special Computational Provisions Impairment Losses Foreign Exchange and Hedging/Deferral Interest Securities Reorganisations, Acquisitions and Disposals Special Companies Derivative Contracts - Definition and Scope Derivative Contracts - Measurement of Profits Embedded Derivatives Worldwide Debt Cap Transfer Pricing Stock Lending and Repos International Aspects Islamic Finance Cases Appendices

Reports by the public of suspected underreporting of taxes or other tax violations can help IRS detect millions of dollars in taxes that would otherwise go uncollected. Productive referrals can help address the net $385 billion tax gap--the difference between the amount of taxes paid voluntarily on time and the amount owed. IRS received about 87,000 information referrals in fiscal year 2015. This book describes IRSs process for screening and routing information referrals; assesses the controls for the information referral screening and routing process; and evaluates the coordination between the information referral process, the Whistleblower Office, and other IRS referral programs.

This report presents the results of our review to determine whether allegations were founded that the Internal Revenue Service (IRS): 1) targeted specific groups applying for tax-exempt status, 2)delayed processing of targeted groups' applications for tax-exempt status, and 3) requested unnecessary information from targeted groups. This audit was initiated based on concerns expressed by members of Congress and reported in the media regarding the IRS's treatment of organizations applying for tax-exempt status. This review is included in our Fiscal Year 2013 Annual Audit Plan and addresses the major management challenge of Tax Compliance Initiatives. We would like to clarify a few issues based on the IRS response to our report. The response states that our report views approvals as evidence that the Exempt Organizations function should not have looked closely at those applications. We disagree with this statement. Our objection was to the criteria used to identify these applications for review. We believe all applications should be reviewed prior to approval to determine whether tax-exempt status should be granted. The IRS's response also states that issues discussed in the report have been resolved. We disagree with this statement as well. Nine recommendations were made to correct concerns we raised in the report, and corrective actions have not been fully implemented. Further, as our report notes, a substantial number of applications have been under review, some for more than three years and through two election cycles, and remain open. Until these cases are closed by the IRS and our recommendations are fully implemented, we do not consider the concerns in this report to be resolved. Management's complete response to the draft report is included as Appendix VIII.

The Earned Income Tax Credit (EITC) is a refundable tax credit available to eligible workers with relatively low earnings. Because the credit is refundable, an EITC recipient need not owe taxes to receive the benefit. The credit is authorized by Section 32 of the Internal Revenue Code (IRC) and administered as part of the federal income tax system. In 2013, a total of $68.1 billion was claimed by 28.8 million tax filers, making the EITC the largest need-tested anti-poverty cash assistance program. This book provides an overview of the EITC, first discussing eligibility requirements for the credit, followed by how the credit is computed and paid; provides data on the growth of the EITC since it was first enacted in 1975; and includes data on the EITC claimed on 2013 tax returns, examining EITC claims by number of qualifying children, income level, tax filing status, and location of residence. Moreover, this book summarizes findings from the 2014 IRS study detailing the factors that can lead to erroneous claims of the credit, and describes the challenges the IRS may face in their efforts to reduce each type of error. It also examines the role of paid tax preparers on EITC error.

Audit activities help ensure taxpayers pay the right amount of tax and help address the net $385 billion tax gapthe difference between the amount of taxes paid voluntarily and on time, and the amount owed. Audit programs in Internal Revenue Services (IRS) Wage and Investment division (W&I) mainly cover refundable credits reported on the Form 1040, Individual Income Tax Return. The hundreds of thousands of taxpayers whom W&I interacts with annually during audits make it critical to apply the tax law fairly. Unfair selection would increase burden on taxpayers and reduce public confidence in IRS. This book reviews and describes the W&I process for selecting tax returns for audit, and determines how well W&I's audit selection procedures support its mission and goal to apply the tax law with integrity and fairness to all. This book also describes IRSs processes and controls for selecting Small Business/Self-Employed (SB/SE) taxpayers for audit; and determines how well SB/SEs selection processes and controls support its mission to apply the tax law with integrity and fairness to all.

Are you a foreign person or business planning to invest or reside in the United States? Do you know the U.S. tax rules that may apply to you and tax your world wide assets? Are you a foreign person mistakenly visiting the United States too many days in a year? What happens for U.S. tax purposes when a foreigner receives a Green Card? Are real estate investments in the U.S. by foreigners taxed differently? Not knowing the tax rules and missing strategies can cost a foreign person or business millions of dollars in fines and penalties every year. Learn what has to be reported to the IRS and how to plan to minimize taxes and avoid penalties. Find out how your tax status may vary from your immigration status. The United States is one of the top choices for real estate investment by foreigners. Foreign investors are rushing to buy residential and commercial real estate. Unique tax rules apply when foreigners invest in U.S. real estate and are explained in basic language in this guide. A Tax Guide 4 Foreigners provides tax tips for foreigners who invest, live or work in the United States. A simple explanation of the most important rules on income, estate and gift taxes is provided in this guide. It's a good place for a foreign person or business to begin to understand the U.S. tax system and how to make the right choices.

This Tax Guide is an easy to use and understandable reference for anyone, including tax professionals, who prepare 2013 income tax returns. The Guide follows the flow of a tax return, from filing status and requirements through tax credits. It is primarily for use in preparing individual and small business tax returns, with chapters that include detailed discussions on employee travel and entertainment expenses, depreciation, and carrying on a trade or business as a sole proprietor, partnership, farmer, and S-Corporation. It also includes informative language and examples on classifying workers as employees vs. independent contractors, and reasonable salaries for S-Corporation shareholders. A unique feature of this Guide compared to others on the market is a chapter devoted to dealing with the IRS, which alone is worth getting this Guide as a reference. It includes detailed information on applicable penalties for underpayment of taxes, failure to file, failure to pay, and how to avoid paying penalties and interest. It discusses how taxpayers can meet the eligibility requirements for the IRS "Fresh Start" program which is designed to help financially distressed taxpayers resolve tax problems more quickly and relieve them of certain penalties. Also, First-Time Penalty Abatement and the "Fast Track Settlement Program" are addressed, which are IRS initiatives designed to help taxpayers. The chapter on dealing with the IRS includes a section on IRS audits that talks about IRS notices and the Agency's latest concentration on its audit-by-mail program. It discusses how to survive an IRS audit, how to handle a dispute over a tax liability, how to prepare a request for appeals, closing agreements, offers in compromise, and what happens in Tax Court. Perhaps the most important chapter in this Guide is the one about the "Patient Protection and Affordable Care Act," also known as Obamacare. This chapter discusses in detail all of the compliance and tax provisions of the law, including the additional 0.9% Medicare surtax on high-income earners, the 3.8% surtax on "net investment Income" of high-income earners, and the 2.3% excise tax on medical devices. The individual and employer mandates are discussed in detail, including penalties, exemptions, the IRS role in implementing the mandates, and the latest implementation timelines. While some IRS regulations and court cases are referred to in this Guide, the aim was to keep such references to a minimum. The goal was to discuss, in plain English, what is required and not required by tax laws and regulations without the legal jargon as much as possible, and to give understandable examples where needed. We believe our goal has been achieved by publishing this tax book.

This book examines the most recent developments, analysis and research concerning taxation in the United States. Topics discussed in this compilation include a review of Constitutional authorities under which Congress regulates state taxation; a brief overview of the Internet Tax Freedom Act; legal issues of taxation of internet sales and access; current laws related to the repatriation of foreign earnings; energy tax initiatives; energy tax policies; and differences in definitions and rules in the tax code.

The Exempt Organizations (EO) unit within the Tax Exempt and Government Entities (TE/GE) division at the Internal Revenue Service (IRS) reviews organisations' applications for tax-exempt status to determine whether to grant status and oversees existing exempt organisations' compliance with the tax code. To identify exempt organisations for possible examination, EO uses a variety of information sources: for example, EO receives referrals of exempt organisation noncompliance from third parties, such as the public, and other parts of IRS. This book describes these processes and assesses the adequacy of examination selection controls.

The Patient Protection and Affordable Care Act (ACA; P.L. 111-148, as amended) included a provision to impose an excise tax on high-cost employer-sponsored insurance (ESI) coverage beginning in 2018. This provision, popularly termed the Cadillac tax, imposes an excise tax on ESI coverage in excess of a predetermined threshold. The tax is imposed on the coverage provider, typically the health insurance provider or the entity that administers the plan benefits. Currently, employers' spending on ESI coverage and most employees' contributions to ESI plans are exempt from income and payroll taxes. Although proposals to limit the amount of health insurance benefits eligible for this exclusion were considered, the ACA, as enacted, did not limit the exclusion for employer-provided health insurance coverage. The Cadillac tax discourages high-cost employer health plans through another approach. This book examines several issues. It evaluates the potential of the Cadillac tax to affect health insurance coverage and the health care market. It also examines the expected incidence (burden) of the tax -- that is, which group's income will be reduced by the tax. Finally, the book discusses implications for economic efficiency in the context of tax administration.