According to a report from the Stanford Graduate School of Business, many people may be moving to foreign real estate investments and even investments in artwork and other collectibles as a way of avoiding their tax obligations.
As previous posts here have discussed, many people in White Plains and the other New York suburbs may find themselves the target of an IRS audit or other collection action. Following an audit, even a well-meaning person may find himself faced with a large tax bill that would be hard to afford. After all, New Yorkers can and do make honest mistakes on their taxes. Moreover, tax laws and regulations, and even the legal positions of the IRS about the same laws and regulations, change over time. Sometimes, the IRS or even an individual examiner takes an aggressive position on which there is plenty of room for disagreement.
New York state wants its taxes, and will take a number of steps to collect anything an individual or business might owe. That includes using tax warrants and levies, a couple of tools that put pressure on a person until they pay everything back.
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.
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.