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White Plains New York Tax Blog

Overview of New York property tax liens

Residents of White Plains probably do not have to be told that the State of New York uses multiple different types of taxes in order to generate revenue for different government programs.

Those who own homes or other property in this state, for instance, will likely have to pay property taxes. If they do not do so, then, as is the case with other types of taxes, the state, or a subdivision, may pursue collection efforts.

Are offshore accounts legal?

A previous post on this blog talked about how a family of prominent New Yorkers must now serve a few months in federal prison for their role in a fraudulent tax scheme. The scheme involved an offshore account from which the family would withdraw money under the table into their personal accounts without paying applicable taxes.

The story serves as a good opportunity to remind the residents of White Plains that having an offshore account is not illegal. For one, an offshore account does not necessarily have to be in Switzerland or somewhere in the Caribbean, nor does it have to involve any particularly secretive activity.

New York siblings face prison in tax evasion scheme

Following their guilty pleas, a federal judge informed four siblings in the New York area that they will have to serve a few months in federal prison. Additionally, they owe about $4 million in back taxes and penalties. They will have to pay this as part of their restitution in the criminal case.

The prison sentence came as a bit of a surprise even to federal prosecutors, who had not recommended that the family go to jail. In support of their recommendation, prosecutors pointed to the fact that all four had provided valuable testimony that led to the conviction of a solicitor who organized this scheme.

Tax implications of classifying employees vs. contractors

Companies like Uber and Lyft have recently made news for misclassifying drivers as independent contractors rather than employees. Understanding such classifications can be especially critical for small businesses.

According to The Balance, classifying workers as employees or contractors alters how you pay the workers, how they pay taxes and how your business pays taxes. New York business owners must correctly classify workers to determine whether to withhold income taxes, pay FICA taxes, or Social Security and Medicare taxes, and pay unemployment tax. Misclassifying can lead to significant penalties from the IRS.

How can the Office of Appeals help me?

The Office of Appeals is a division within the Internal Revenue Service, or IRS, that operates independently from other branches within the agency. Their role is to review the decisions of field agents and others and, if necessary, correct them so that they comply with the law and are fair to the taxpayer.

A taxpayer in White Plains and the surrounding communities who has a dispute with the IRS, including a dispute over the IRS's collection activities. Basically, a person who disagrees with the IRS's actions can file what is called a formal written protest.

New York taxpayers should be aware of new regulations

One of the most popular deductions that White Plains residents may prefer to take on their taxes is the charitable deduction. This deduction allows those who contribute to qualified not-for-profits, often a 501(c)(3) corporation, to strike that amount from their adjusted gross income as an itemized deduction.

For those who itemize their tax deductions and who also give to charitable organizations, their donations can save them thousands of dollars in tax liability. However, donors do need to be careful, because the IRS watches how taxpayers use these deductions carefully. The agency will not hesitate to close loopholes and then enforce perceived rule violations.

Tax issues can lead to complicated criminal and civil litigation

The Internal Revenue Service is one of the most dreaded of all public institutions in America. When the IRS comes calling for civil tax concerns -- usually with a letter sent via regular US mail - a person's heart can sink. Were taxes left unpaid?

Was income overlooked and not reported? Whatever the situation, a person who has a civil tax issue with the IRS may be facing a significant amount of back taxes and potential penalties and fines.

Who double-checks wealthy Americans’ math?

Like many Americans, taxes are probably one of the last things you want to deal with – especially after you file your tax return. But unfortunately, there is always the possibility that you could face an audit.

If you earn a minimum of $10 million annually, you know the amount of dedicated effort you invested to achieve success. And since the IRS is more likely to audit those with substantial incomes, you might be happy about a reduced chance of an audit.

Understanding negligence and tax fraud

When facing tax problems, it is important for tax payers to understand how tax fraud is looked at and treated by the IRS. Any tax controversy can be overwhelming to the tax payer so it is helpful to understand what is considered negligence and what might be considered fraud.

Income tax fraud refers to when a tax payer intentionally fails to file a tax return in order to avoid taxes; intentionally fails to report all of the income they received; willfully fails to pay taxes that are due; makes fraudulent or false claims on a tax return; or prepares a false tax return. It is important to understand that the IRS recognizes the complexity of the tax code and the challenges that may present for tax payers.

Avoiding tax evasion issues

Although the tax code is complex, the IRS generally recognizes two types of tax evasion. It is important for taxpayers to be familiar with what those two types are and that there are legal protections available if they have been accused of committing tax evasion and are facing criminal tax charges.

The first type of tax evasion recognized by the IRS includes taking an action to evade the assessment of tax. This type of tax evasion can include underreporting of taxes as an attempt to evade taxes the taxpayer owes or are due. It is important to understand that this type of tax evasion requires a showing of more than negligence or that the taxpayer made an innocent mistake in reporting.

Contact us

White Plains Office
81 Main Street
Suite 307
White Plains, New York 10601

Phone: 914-686-7171
Fax: 914-686-0168
White Plains Law Office Map

East Hampton Office
17 Beverly Road
Post Office Box 2888
East Hampton, New York 11937

Phone: 631-329-7171
Fax: 631-604-6140
East Hampton Law Office Map

Chappaqua Office
726 King Street
Post Office Box 488
Chappaqua, New York 10514

Phone: 914-238-7171
Fax: 914-238-4353
Chappaqua Law Office Map

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