May 1, 2011
IRS Initiatives Make 'Hidden Income' Harder to Keep Secret
Estate Planning Journal
Private Wealth Services Partner Kevin E. Packman authored an Estate Planning Journal article titled "IRS Initiatives Make 'Hidden Income' Harder to Keep Secret."
In the article, Mr. Packman explores some of the most common tools used by the IRS to catch taxpayers who are paying less than their share of tax, whether as a result of an error or intent to cheat. Modernized technology, whistleblower rewards, tax treaties and information exchange agreements and a new voluntary disclosure program assist the IRS in uncovering unreported income. As for a taxpayer who is not in substantial compliance, experience strongly suggests that once the IRS has such an individual in its sights, the individual may well consider himself or herself fortunate if the resolution is only tax, interest, and substantial penalties, as opposed to incarceration.
In the article, Mr. Packman explores some of the most common tools used by the IRS to catch taxpayers who are paying less than their share of tax, whether as a result of an error or intent to cheat. Modernized technology, whistleblower rewards, tax treaties and information exchange agreements and a new voluntary disclosure program assist the IRS in uncovering unreported income. As for a taxpayer who is not in substantial compliance, experience strongly suggests that once the IRS has such an individual in its sights, the individual may well consider himself or herself fortunate if the resolution is only tax, interest, and substantial penalties, as opposed to incarceration.