The DOJ might have now (quite emphatically) resolved some of the confusion between these positions. :-|There is a latitude (gulf!) of opinion among professionals about whether the US recognises a UK 25% tax-free lump sum as US tax free. Pick the bones from this:
https://www.castroandco.com/blog/2018/f ... ributions/https://www.fjvtax.com/blog/2019/07/23/ ... -citizens/Under the U.S.-U.K. Income Tax Treaty, however, there is an opportunity to lawfully avoid U.S. taxation on the 25% Pension Commencement Lump Sum (PCLS) portion under Article 17, Paragraph 1(b) of the U.S.-U.K. Income Tax Treaty. ... Anyone who says otherwise is a dangerous fool you should avoid unless you want to voluntarily pay more tax to the IRS.In summary, a UK 25% lump-sum pension distribution is fully taxable to a US citizen and resident and the US tax authorities have specifically stated that the Treaty language agrees. ... One taking an alternative position on this issue should be aware that it will likely require a substantive audit defense.
Northern District of Texas | Mansfield Tax Preparer Convicted of 33 Counts of Tax Fraud After Bench Trial | United States Department of Justice
A would-be lawyer who falsely inflated dozens of client tax returns was convicted Friday of 33 counts of tax fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
John Anthony Castro, 40, owner of the virtual tax preparation business Castro & Company, was indicted in January. Following a five-day bench trial before Senior U.S. District Judge Terry R Means, he was convicted on all 33 counts of assisting in the preparation of a fraudulent return and was immediately taken into custody.
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He was successful at marketing to clients around the world, claiming to be an expert on certain tax issues related to Australian ex-pats, among other things. Between 2017 and 2019, he filed more than 1,900 tax returns on behalf of individuals from all over the world.
As part of his pitch, Mr. Castro promised his clients a significantly higher refund than they would receive from other preparers, claiming he knew how to identify and claim deductions that others did not. He added there was no risk, as he would simply split the additional refund amount with them to account for his fee. He would not share the tax return with clients before filing, but would instead simply inform them of the amount of the anticipated refund.
Statistics: Posted by TedSwippet — Thu Jun 13, 2024 2:58 am — Replies 13 — Views 3415