Georgia residents may be interested in the case of a Mexican man who tried unsuccessfully to recover millions that the IRS had deducted from his gambling winnings. The man struck it big in Las Vegas between 2007 and 2010 playing high-limit slot machines, but a significant part of his winnings were withheld. The IRS levy amounted to $16.3 million.
Former NFL player Kordell Stewart has reportedly been served a notice of a tax lien from the state of Georgia. The former quarterback owes the state more than $13,000 for back taxes and accrued interest. Before getting in trouble with the state, Stewart was reportedly involved in a bitter divorce in which he ended up locking his ex-wife out of the mansion they had once shared.
Georgia residents may be interested in an article discussing what the IRS views as willful violations versus innocent mistakes. This standard may be different than what most taxpayers think and the consequences can be harsh if careful attention is not paid.
On July 1, the Internal Revenue Service will get a better idea of funds placed in American held accounts in foreign banks and institutions. In short, reporting money and investments abroad will not rely solely on the honor system anymore. Instead, foreign financial institutions will provide access or be charged a 30 percent withholding tax on payments that can be withheld.
The IRS agreed to pay the National Organization for Marriage $50,000 after it leaked information from a 2008 tax return that was later published in 2012 on the website of the Human Rights Campaign. The chairman of the NOM said that he was thankful that the IRS admitted to wrongdoing after a long and arduous process. There was no comment from the IRS about the ruling, and it cited privacy reasons for not commenting on the case.
Georgia taxpayers may wish to think twice before attending an IRS audit alone. A problem with audits is that the taxpayer may be asked to answer questions that they would rather choose to ignore. And every word spoken at an audit may ultimately be used to determine whether back taxes are owed or underreporting of income has occurred.
As the controversy concerning IRS proposed rules concerning 501(c)(4) organizations has not gone away, the Internal Revenue Service is now planning on revising these rule changes. The proposed rules ignited a storm almost from the very beginning. When the proposed rules were originally made available for publication, there were more than 140,000 public comments submitted. This is the most comments ever for any draft federal regulation.