IRS problems aren't as complicated as they look once you see the structure. I'm attorney Darrin Mish. I've represented taxpayers before the IRS for three decades — in Florida, Colorado, Texas, and internationally. Here's the plain-English breakdown.
In an attempt to crack down on those trying to avoid paying taxes, the IRS is proposing a new tax on expatriates who’ve denounced their American citizenship.
If the measure passes, which is highly likely, taxpayers who receive gifts and inheritances from people who expatriated themselves will be subject to a gift and an estate tax if it applies.
This also means that anyone receiving a renouncing their citizenship will have to pay a tax on their wealth, and then pay another tax when they decide to gift it.
Cracking down on those who fail to pay taxes is an attempt by the IRS to collect billions upon billions of dollars that go unreported. As an example, Canada and the United States have agree to create a pact in which they’ll share tax information. Bank account with over $50,000 in holding will be reported.
This fight has also been championed by Barack Obama. As it stands, tax evasion is serious issue and is an ongoing concern of the government. Failing to pay taxes can result in stiff penalties and fees, or even jail time.
The laws governing taxes are complex. It’s never a bad idea to consult with the tax experts who know the ropes.
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