More Americans Giving Up Citizenship For Offshore Accounts

In July 2014, the Foreign Account Tax Compliance Act (FATCA) was officially implemented, which requires foreign banks to disclose the account information of U.S. taxpayers to the IRS for investigation.  The IRS collects this information on unreported offshore accounts for use in investigation for audit and criminal prosecution of non-compliant U.S. taxpayers. As a result, increasing numbers of Americans are renouncing their U.S. citizenship for tax purposes, according to recent statistics relea...

Samuel Wyly to Pay $188 million for Offshore Tax Evasion

Wealthy entrepreneur Samuel Wyly and the estate of his deceased brother Charles have been ordered to pay the U.S. Government a total of $188 million plus significant interest for unpaid taxes on the proceeds from unreported offshore trusts under their control. According to court records, the Wylys operated a group of offshore trusts in the Isle of Man in order to trade securities of public companies that they controlled. The offshore trusts allowed the brothers to avoid paying U.S. taxes on the...

IRS Voluntary Classification Settlement Program (VCSP): Employee or Independent Contractor?

The Voluntary Classification Settlement Program (VCSP) is  a program offered by the Internal Revenue Service that provides an opportunity for taxpayers to voluntarily reclassify their workers as employees for tax purposes. The VCSP extends to the taxpayer partial relief from federal employment taxes per the terms of their closing agreement. To participate in this voluntary program, the taxpayer must meet certain eligibility requirements and apply to participate in the VCSP by filing Form 8952, A...