A recent decision of the Third Circuit Court of Appeals illustrates the futility of expecting that the Fifth Amendment Privilege Against Self-incrimination will shield taxpayers from production of offshore financial records. The trial court was asked to protect a U.S. taxpayer from enforcement of an IRS Summons for production of offshore account document. The trial court held in favor of the IRS and ordered the taxpayer to appear and produce the records. The Third Circuit upheld the trial court, stating:
The IRS and the states have mutual exchange of information agreements. The agreements are oftern bi-directional, so that state information about audit results, often including sasles tax audits, is provided to the IRS jsut as IRS audit reuslt are provided to the states.
The Internal Revenue Code may be the single strongest enforecment weapon in the battle over legal sale and distribution of "medical marijuana". The Opinion of the United Staes Court of Appeals for the Ninth Circuit , Oliver v. CIR is controlling in Alaska, Washington, Oregon, California, Arizona, Idaho, Nevada and Montana states in pertinent part:
WILLFUL V. NON-WILLFUL CHECKLIST
FBARS for 2014 are Due and MUST BE FILED by June 30, 2015
The United States Attorney for the Southern District of New York announced that the
In her recent testimony before Congress Caroline Ciraolo Acting Assistant Attorney General stated the enforcement priorities for the Tax Division. Among the the four areas of focus is Offshore Tax Evasion.
In a recent conference the Director of theFinancial Crimes Enforcemnt Network (FinCen) discussed the use of Currency Transaction Reports (CTR's) and Suspicious Activity Reports (SAR's) which are required to be filed by financial institutions under the Bank Secrecy Act (BSA). The purpose of this note is to illustrate how SARs are used in tax cases by the IRS.
As Californians evaluate the potential for legalization of Marijuana it is important to consider the current state of conflict between state and federal laws and regulations regarding the production, distribution and sale of Marijuana. As MillarLaw specializes in tax issues this note will focus on tax and related financial problems. The public policy debate about the social and personal costs versus the potential revenue benefits of legalization are outside the scope of this analysis.
A recent indictment by the United States Attorney's office in California illustrates the inter-relationship between curency transfer restrictions, (such as those involving Iran), foreign financial account reporting (the FBAR requirement) and the failure to report taxable income (filing of a false tax return ).