According to Bloomberg News,
I carried a certain amount of starry-eyed innocence with me early in my tax career. And I remember the day it started to fade. I had been anticipating finalizing a settlement for a client’s outstanding tax liability. On paper, I was convinced we would get what we wanted. Then I got the phone call.
“What about the (other) bank account?” the IRS representative asked.
I explained that I didn’t know what she was talking about. We had, I said confidently, reported all of the taxpayer’s income.
Spoiler alert: We had not.
The taxpayer—who knew better—had a secret account that he had failed to disclose to the IRS and, importantly, to his attorney. The IRS found it.
It was the first time I realized that those who went out of their way to avoid paying taxes didn’t always reside in garden spots, stashing their millions offshore. Sometimes they merely lived in suburban Philadelphia and spent well above their means.
Click here to see the full article: “Breaking Down the Plan to Report Your Bank Account to the IRS”
Posted by Isabella King, Associate Editor, Wealth Strategies Journal.