Business and Tax Lawyer Blog

Downtown Vision is a non-profit organization funded by assessments on property in a ninety block radius around downtown Jacksonville, Florida. The organization has announced that it will be focusing its efforts on giving downtown Jacksonville a clean and safe appearance, and they are starting with the sidewalks. The organization has about $500,000 of its $1.2 million budget dedicated to its clean and safe program.

The walks are covered with wads of used chewing gum and other dirt and grime that are making them look dingy and uninviting. Downtown Vision has recently contracted with Service Group, Inc. to help revitalize the dirty walkways. But according to Terry Lorince, executive director of Downtown Vision, “we’ve got a big catchup to do.”

Service Group, Inc has the experience required; the company has contracts with at least twenty other downtown organizations across the country.

As part of the contract, Downtown Vision’s on-street ambassadors will become employees of Service Group. Downtown Vision has also purchased some serious cleaning equipment, including a sidewalk scrubber, a “Billy Goat”

vacuum and a pressure washer with a special attachment for powering off stuck on gum.

It will take some time to clean all of the sidewalks in the downtown area, but local business owners and resident alike will benefit from the new clean and inviting look. Read more about the clean and safe downtown Jacksonville, Florida program at Cleaning up downtown to improve its image.

If you live in the Jacksonville, Florida or Orlando, Florida area and have a business legal matter, please contact Wood, Atter & Wolf, P.A. for business legal counsel.

Around this time of year, many bloggers, tax professionals, and media outlets circulate tax planning tips. But good tax planning is a discipline that takes place all year long – not just on April 14th. Florida residents and other taxpayers around the country can and should start planning now for their 2010 tax filings.

A tax planning strategy starts with the basics. Your net taxable income is your gross income (or top-line pay) less any deductible expenses. Tax planning are activities designed to minimize a person's net taxable income. That means using legal and ethical means of lowering your gross income while maximizing your deductions.

Lowering Gross Income

Lowering your gross income doesn't refer to quitting your job, it simply requires excluding certain income from your federal income tax. Some effective ways to accomplish this include:

• Direct more income into a 401k or 401b. Your contributions are subtracted from your gross income, and you are saving for retirement at the same time. It is a real win / win situation.

• Defer some income. Some examples include not sending invoices for work completed until January 1st of the next year, or deferring capital gains on the sale of a certain stock.

Maximizing Deductions

This can include taking deductions or taking advantage of tax credits. Some tips for taking these deductions include:

• Check into whether you qualify for certain tax credits. These include the child tax credit, hope and lifetime learning credit, child and dependent care credit, hybrid car credit, energy saving devices credit, and the making work pay credit

• Maximize the amount of deduction you can take by contributing to IRA accounts, deducting qualified medical expenses, taking allowed homeowner deductions, and certain business and personal expenses.

Read more tips and strategies for lowering your tax bill at Tax Planning Tips.

Tax law can be complicated, and changes from year to year. Be sure to consult a tax professional when creating a tax plan or preparing your return. If you live in the Jacksonville, Florida area and require assistance with tax planning, please contact Wood, Atter & Wolf for tax planning legal counsel.

Ben Franklin may have been overly optimistic for the Internal Revenue Service when he said that the only two certainties in life are death and taxes. For many people, avoiding their tax responsibility is an art form. From offshore accounts, to hiding income, to simply not paying the bill, the following six people have made the tax evasion hall of fame.

Walter Anderson

This telecom entrepreneur was at the center of the largest tax evasion case in United States history. A 2005 probe revealed that Anderson had used an elaborate network of offshore companies to hide money from the IRS. In the end he was found to owe $200 million to the government, and was ordered to pay $400 million after pleading guilty to the charges against him.

Sinbad

Celebrity and comedian Sinbad reportedly filed federal income tax returns every year between 1998 and 2006, but never actually sent in the money he owed on the returns. His total delinquent tax bill is $8.5 million, which may be hard for the IRS to collect, since Sinbad's 2009 bankruptcy filing reveals that he has a negative net worth.

Dionne Warwick

The California Franchise Tax Board has named Ms. Warwick one of the worst tax debtors in California. She reportedly owes $2.67 million to the state of California. She has apparently not been prosecuted, and sources report that she is in the process of paying what she owes.

OJ Simpson

Simpson is perhaps better known for more serious charges than tax evasion, but he has been accused by the state of California of owing the state $1.44 million in unpaid taxes, which he tried to avoid by moving to Florida.

Marc Anthony

Latino singer Anthony failed to pay his taxes from 2000 to 2004, saying that he had hired a firm to handle his finances and was unaware that he owed $2.5 million in taxes to the federal government. The firm pleaded guilty to tax felonies and was punished; Anthony paid his tax bill and was not prosecuted.

Leona Helmsley

In 1989 this billionaire hotelier was charged with one count of conspiracy to defraud the United States, three counts of tax evasion, three counts of filing false personal tax returns, sixteen counts of assisting in the filing of false corporate and partnership tax returns, and ten counts of mail fraud, according to Wikipedia. She was sentenced to sixteen years in prison but only served 19 months behind bars and two years on house arrest.

Read about some other top tax dodgers at The 12 Most Notorious Tax Evaders of All-Time.

If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact Wood, Atter & Wolf for tax planning legal counsel.

More than eighty percent of American households use either a paid tax preparer or tax preparation software to help them file their taxes. The Internal Revenue Service (IRS) recently announced that they are proposing new registration, testing, and continuing education of tax preparers for the 2010 tax year.

The IRS believes that higher standards will serve to protect taxpayers and increase compliance with tax laws. The goal of the new program is to ensure that taxpayers receive competent, ethical service from qualified professionals.

The requirements will include:

• All paid tax return preparers will have to register with the IRS to obtain a preparer tax identification number (PTIN). They will be subject to a limited tax compliance check to qualify.

• Competency tests for all paid tax return preparers who are not attorneys, certified public accountants (CPAs) or enrolled agents.

• Continuing education for all paid tax return preparers who are not attorneys, CPAs, or enrolled agents.

• The ethical rules which currently only apply to attorneys, CPAs and enrolled agents who practice before the IRS will now be required of all paid preparers.

Read more about the new requirements for paid tax preparers at IRS Proposes New Registration, Testing and Continuing Education Requirements for Tax Return Preparers Not Already Subject to Oversight.

If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact Wood, Atter & Wolf, P.A. for tax planning legal counsel.

Even though the Internal Revenue Service may seem all powerful, it does have a limited budget when it comes to auditing taxpayers in Florida and throughout the US. The IRS recently reported that it would focus its efforts on wealthy Americans who earn more than $100,000 a year. If you are one of the "lucky" ones to fall into this tax bracket, there are ways to lower your chances of getting audited.

If you are married and both spouses contribute to your family's income, it is legal to file taxes separately. This could help you avoid an audit if the separate returns each show an income of less than $100,000. If you were to be audited, it would only be on one of the returns, not both.

If you have a credit card tied to an offshore bank, cancel it. These credit cards are a very popular way for tax evaders to easily access their hidden offshore funds, and they raise a red flag with the IRS.

Never brag to anyone about how you got away with paying less than your fair share of taxes. If the person you bragged to (or someone else who overheard you) turns you in to the IRS they could be rewarded up to 30% on the additional tax collected from you. If you want to turn in a fraudulent taxpayer, the number to dial is 1-800-829-0433.

Be skeptical of tax planners or preparers who claim that they can get you a huge tax return, or that there is a secret structure that can insulate you from paying taxes. If you get caught and end up in court you could be fined as much as $25,000 for wasting the court's time.

Be careful with claiming business expenses. If you are running a legitimate, for-profit business, there are many expenses that are deductible. If the expense is questionable or you can't substantiate your claim, don't take the deduction.

Of course, always keep records to substantiate your deductions. If you do get audited you will be very glad that you did. Find out more about how to avoid an IRS audit at 6 Ways to Keep the IRS at Bay.

If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact Wood, Atter & Wolf, P.A. for legal counsel.

The Internal Revenue Service (IRS) of the United States has announced that it will start working closely with foreign governments to more carefully scrutinize corporate tax returns and those of the rich. The move is designed to stop corporations and wealthy individuals from getting away with "tax arbitrage," a term that describes evading taxes in one country by stashing money in another country with more favorable tax laws.

The program is part of a larger initiative to ensure that wealthy individuals and big corporations comply with US tax laws and pay their fair share. So far, the joint audits will only be held with other countries with whom the US has a treaty to do so. The IRS says they will especially be keeping an eye out for abuses of deferral of taxes on earnings abroad. The crackdown has already netted the US some return; after an investigation UBS AG agreed to pay $780 million in owed taxes.

Corporations and the rich have a duty to pay their fair share of taxes. Those that choose not to comply with US tax laws or try to stretch the rules for their own benefit may very well find themselves the target of a very thorough joint IRS / international audit. Find out more about the new IRS program at US IRS to start co audits with other nations.

If you have a business legal matter, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Did you know you can deduct some or all of the sales tax you paid when you bought your car last year?  If you bought your car between February 16, 2009 and December 31, 2009, you can deduct the sale tax, limited up to $49,500 of the purchase price, you paid for your vehicle.  For example, if your car cost $20,000, you could deduct all the sales tax paid for that vehicle.  However, if your vehicle cost $60,000, you could only deduct 83% of your sales tax because you are limited to the amount of the tax you paid on $49,500.

This deduction is available for individuals with incomes of $125,000 or less or married couples filing jointly with incomes of $250,000 or less.  The deduction phases out and is not available for individuals with incomes greater than $135,000 or $260,000 for married couples filing jointly.

Remember, this is a deduction and not a tax credit.  A deduction reduces the amount of taxable income you have whereas a credit reduces the amount of tax you owe.  For example, if you have a $1000 deduction and you made $50,000 in taxable income last year, you would report only $49,000 of income.  Whereas if you had a $1000 tax credit and after all the calculations, the IRS said you owed them taxes of $1001, you would only owe them $1 since the credit reduced the actual tax bill.

If you think this deduction is applicable to you or you want to know more about other possible deductions, please consult with a tax professional in regards to your tax needs.

Throughout the course of the year, it is important to keep track of documents that you will use to fill out your tax return. Once the tax return is filed, however, how long must you keep those records? If you are audited by the Internal Revenue Service (IRS), you will be required to produce them.

According to the IRS website, the length of time a document should be retained depends on what type of document it is, and what activity it is documenting. In general, it recommends that taxpayers keep supporting tax documentation until the period of limitations on that year's return runs out.

The period of limitations refers to the time during which you may amend your tax return or the IRS may assess additional taxes. Some general guidelines for retaining tax returns and supporting documentations include:

• In general, keep copies of your filed returns indefinitely, for your own records and to help you fill out subsequent year's tax forms

• If you did not owe an additional tax and you have filed properly, keep records for three years

• If you did not report income that you should have reported, filed a fraudulent return, or did not file a return at all, keep the records indefinitely

• If you file a claim for a credit or refund after you filed your original return, keep records for three years from the date the original return was filed

• If you claimed a loss on securities or bad debt, keep records for seven years

• If the records relate to property, keep the documents until the period of limitations expires for the tax year in which you dispose of the property in a taxable disposition

Keep in mind that your insurance company or creditors may require you to retain records longer than the IRS does. Read the IRS article at How long should I keep records?

If you require assistance with tax planning, please contact a tax attorney for legal counsel.

Most people don't mean to cheat on their taxes, but sometimes vague rules and changing regulations can mean you are cheating on your taxes without even realizing it. The following are the three most common tax mistakes most people make, and how to avoid them.

Mistake #1: Not keeping business and personal affairs separate

This can be harder to do than it sounds. You may be friends with a customer, go on vacation with a client, or buy a vacation home that you rent out in the off season. But you will be better off if you can keep business and personal affairs as separate as possible. Some common mistakes in this area include claiming that a hobby is a business or trying to deduct the fees for your divorce because it put your business at risk.

Mistake #2: Not keeping good records

This isn't just for business owners. Gamblers should keep records of their losses; they can use them to offset a big win they get later in the year. Charitable donation should be made by check, not cash so that you have a record of how much you gave and to whom.

Mistake #3: Not keeping 1099 and other informational forms

1099s and 1098s are considered "information returns," meaning that you are not required to send them in with your return. But you need a system to track and account for 1099s whether you are the payer or the payee. Also be sure to check the information carefully and request a correction if required.

Read more details of each of these common tax mistakes at 3 tax mistakes made every day.

If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact a tax attorney for tax planning legal counsel.

While congress has yet to pass any laws addressing the 2010 estate tax lapse, several states are racing to enact legislation to assist families whose estate plans have fallen apart. Experts worry that the new, temporary estate tax laws could cause people to accidentally disinherit spouses, which in turn would lead to costly and lengthy court battles over the intent of the deceased. The lapse could ultimately impoverish widows and widowers, and end up requiring families to pay more estate taxes than are necessary.

Virginia has led a handful of other states in passing emergency legislation to nip these problems in the bud. Florida currently has estate tax legislation pending. Most of the emergency estate laws require any tax terms or formulas to be read as if the 2009 estate tax were still in effect, unless specifically spelled out otherwise. In Florida, potential beneficiaries may go to court if they believe that the actual estate plan is not what the deceased intended; those with ambiguous documents can go to court right away to determine the decedent's intent, and all heirs might have to wait until the court has ruled to collect their inheritance.

Unfortunately, since no one expected the congress to allow the estate and other taxes to lapse, most wills and trusts are still written to maximize estate tax savings under the 2009 estate and generation-skipping tax rules. Read more about the confusion caused by the estate tax lapse at States Race To Clean Up Congress' Estate Tax Mess.

If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact our firm for estate planning legal counsel.

There are many reasons why the State of Florida is a great state to declare your residency in.  I meet with clients and prospective clients all the time who are residents of another state and talk to them about why they should consider becoming a Florida resident.

The first reason to become a Florida resident is that there is no Florida income, estate, inheritance, gift, intangibles or generation-skipping tax.  Most states impose at least one of the above taxes on its residents.  Real property and tangible personal property are generally subject to estate tax by the state in which the property is located.  All other property such as bank and investment accounts are generally subject to the estate tax laws in place in the state the decedent resided in prior to their death.

An example that demonstrates this is Bob.  Bob has a checking account in a Florida bank, has him home in Florida homesteaded, a car, an IRA and a vacation home in New York.  Upon Bob's death, his vacation home in New York would be subject to New York estate taxes but the rest of his property would pass estate tax free under Florida law.  I won't discuss the federal estate tax as that is a completely different animal.

Florida residents and others should consult with an estate planning and tax attorney to review the various documents and strategies to take full advantage of the tax benefits under Florida law.

Congress is changing the rules for tax breaks on charitable donation made to Haiti relief efforts in the wake of the devastating earthquake that ravaged the country earlier this year. The breaks are modeled after similar measures passed after Hurricane Katrina and the Indian Ocean Tsunami.

One bill allows Florida taxpayers to deduct any donations made to Haiti relief efforts through the end of February 2010 on their 2009 taxes. For those who texted a $10 donation to the Red Cross (by texting "HAITI" to "90999"), a phone bill showing the donation is considered sufficient proof. It is estimated that the Red Cross has received nearly $25 million in text message donations.

Congressional representatives have stated that the bill would provide an immediate benefit for those who have already given and an incentive for those who are considering it. But keep in mind that the deduction is only applicable if you itemize deductions.

A second bill would exempt cash donations from certain deduction limits for both businesses and individuals. It also would extend a special rule for corporations to deduct the market value of food contributions.

Find out more about this story at Tax Breaks For Haiti Relief Widening.

If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact our firm for tax planning legal counsel.

Money Central at MSN.com recently published a helpful article for those who never want to get audited by the IRS. Following these steps can keep you off the IRS's radar and out of the hot seat at tax time.

Tip #1: Double check your math

The IRS automatically checks and corrects arithmetic errors on your return, and a few mistakes is not going to trigger an audit. That said, too many mistakes could send up red flags that you weren't careful in your preparation, and that could lead to an audit. To select audit subjects, the IRS generally compares your deduction to the average deductions claimed by similar taxpayers. If yours are significantly different, they may decide to take a closer look.

Tip #2: Don't stand out from the crowd

Several groups are more likely to be audited than others. A highly-audited group includes the self-employed, who have more opportunity to hide income or falsify business expenses. Other suspect groups include those who make most of their income in cash, offshore credit card users and high-risk, high-income taxpayers.

Tip #3: Be prepared to substantiate

If you are audited, the IRS will probably focus on those items that are typically not adequately documented by taxpayers. These are generally automobile expenses, travel, meals and entertainment. Meals and entertainment expenditures over $75 require a receipt, less expensive meals can be tracked in a diary.

Finally, if you do get audited, coming in with a box of disorganized receipts will work against you. The more receipts you can produce and the more organized you are, the better your chances of coming through the audit unscathed. Read more tips about avoiding an audit at 5 ways to avoid an audit.

If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact our firm for tax planning legal counsel.

CNNMoney.com offers an interesting set of financial planning articles called Money 101. One of their recent lessons covered estate planning. They broke down the basics into ten facts about estate planning everyone should know:

1. Estate planning is not just for the wealthy. Everyone should have a basic estate plan in place so that their financial wishes are carried out after they pass on.

2. An estate plan consists of several elements. These may include a will, power of attorney, a living will, or a trust.

3. Start by taking an inventory of all of your assets. Include investments, retirement accounts, insurance policies, and property and business interests.

4. Everyone should have a will. Dying without a will in place can be very costly for your heirs and gives you no say in what happens to your assets. If you have minor children, a will should designate who will take care of them.

5. Trusts are not just for wealthy people. Trusts can help reduce estate and gift taxes.

6. Discuss your estate plans with those who are affected by them. Being clear about what you intend can dispel conflicts later on.

7. Keep an eye on the federal estate tax rate and exemption. So far in 2010, the estate tax has been suspended, but Congress may still pass a law for 2010. Even if they don't, the tax will be reinstated in 2011 at a higher rate, and with a lower exemption than in 2009.

8. Leaving all of your assets to your spouse is tax free, but not necessarily a good idea. This can increase the taxes your children pay after your spouse passes.

9. Give tax free gifts to decrease your estate while you are still living. You can give up to $13,000 ($26,000 if married) to an individual each year. You may also pay an unlimited amount of medical and educational bills, as long as they are paid directly to the provider.

10. Consider leaving money to your favorite charity.

You can read more details of each of these points at Lesson 21: Estate Planning.

If you live in the Jacksonville, Florida area or North Florida and require assistance with estate planning, please contact our firm for estate planning legal counsel.

Under current US tax law, the federal estate tax was scheduled to be suspended in 2010. The US House of Representatives voted recently to permanently extend the current rare along with the $3.5 million per person exclusion; the US Senate has rejected a measure that would have extended it. It is expected that the Senate will look at the issue again early in 2010. Additionally, any law passed would most likely take effect retroactively, meaning that the IRS will take its share of any estates originated in 2010, starting with January 1st no matter when the legislation finally passes.

There is a chance that the Senate will be unable to come to an agreement, and any estates originating in 2010 will not be subject to federal estate tax. If this happens, heirs will still need to pay state estate taxes. They will also need to take into account the fact that any assets will be limited in their step-up in basis, which means that heirs may have to pay higher capital gains taxes. And if congress fails to take action in 2010, the estate tax will rise to fifty-five percent on all estates over $1 million in value in 2011.

Even if there will be no estate tax in 2010, estate planning is still important. Asset protection, disposition of retirement assets, family and charitable gifts and business secession plans are still critical aspects of good estate planning that need to take place whether there will be an estate tax in 2010 or not.

Estate planning is a complicated matter that requires the assistance of a professional estate planning attorney. If you live in the Jacksonville, Florida area or North Florida and require assistance with estate planning, please contact our firm for estate planning legal counsel.

Find out more about this story at Beating the estate tax to death.

It might seem like getting any advantage from the 2010 estate tax lapse would have to mean losing a loved one.  But those in a position to dole out some cash while still alive – and their recipients – will be able to benefit as well. When the estate tax was suspended on January 1^st, 2010, the gift tax rate also fell from 45% to 35%. Barring congressional action it will go back up to 55% come 2011.

That means that those deciding to make taxable gifts this year can potentially save their loved ones a great deal of money on taxes. The Congressional Budget Office has predicted that a rush of wealthy people bestowing taxable gifts on their heirs may cause gift tax income to the federal government to increase tenfold this year. Unfortunately, the congress still has the option to reinstate the estate and gift taxes at any rate they see fit, and they can do so retroactively. However, a carefully constructed estate plan can still help you maximize your tax savings no matter what the congress decides to do.

In order to benefit from this unprecedented opportunity, people will need to take fast action to creatively plan and draft trust provisions that minimize the tax burden on their heirs. If you live in the Jacksonville, Florida area, please contact an estate planning attorney for estate planning and gifting legal counsel. 

Read more details about how to minimize estate and gift taxes at Estate Tax Lapse Helps Healthy Rich.

Even with expert tax planning, Florida taxpayers should be aware of the top five tax deductions and credits most people miss when filing their returns. These include:

1. Tax preparation and financial planning fees: Buying tax books, tax software or visiting a tax preparer are all deductible expenses. Financial planning fees, but not commissions, are also deductible. These are itemized deductions.
2. Work safety equipment and apparel: If you work for a company that expects you to provide your own safety equipment, and you use these items solely at work, you can itemize the expenses as a deduction. This may be of particular interest to Jacksonville, Florida military personnel, who frequently pay out-of-pocket for gear they cannot use while off-duty.
3. Taking care of other people's children: These tax credits can include adoption, foster care or even hosting an exchange student. These credits can be complex, so it is important to consult a tax professional before taking one.
4. Savings bond interest: Savings bonds used to pay college tuition or those placed in a Covedell or 529 college savings plan will not be taxed on interest provided the individuals meet IRS income guidelines. Series EE and I bond interest gains do not have do not have to be claimed until the bonds are spent, disposed of or matured.
5. Local and state income tax: Forty three states allow residents to deduct state and local income taxes paid on necessities like a home purchase. Florida residents may use a standard formula if they cannot determine their exact expenditures for the year.

Along with proper tax planning, an understanding of available deductions and credits can help minimize your tax bill come April 15^th. To read even more tips, visit The 10 Most Obscure Tax Deductions You Should be Using this Year.Many tax deductions and credits have complicated requirements and require the assistance of a qualified tax professional. If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact our firm for tax planning legal counsel.

The last decade has been filled with financial ups and downs, as well as a bevy of tax law changes. Some of the highlights of the last ten years include:

George W. Bush Tax Cuts:

The provisions of George W. Bush's 2001 Economic Growth and Tax Relief Reconciliation Act have been phased in over the course of the last decade. Key points of the legislation included adding a ten percent tax bracket, broadening the fifteen percent bracket, which eased the "marriage penalty," and gradually lowering the top tax rate to thirty-five percent. It also increased the child tax credit, cut capital gains taxes, and phased out the estate tax. But all of these changes are only temporary; unless congress acts to extend the changes, taxes will revert to 2000 levels on January 1^st, 2011.

Tax Rebates:

Rebates were paid under the Bush administration in 2001, 2003 and 2008. The Obama administration has continued the trend, doling out Make Work Pay credits and mailing rebate checks to retirees.

Congress Acting Late:

Last minute tax law changes have kept the American tax payer and the IRS on their toes, often causing forms to be printed and reprinted as the filing deadline approaches. Most recently the Congress failed to extend the estate tax, meaning that it will either be enacted retroactively or not at all.

Crackdowns on Tax Evasion:

Tax evaders who were hiding money in offshore accounts came under greater scrutiny in 2009, when the US struck a deal with Swiss banking officials to cooperate with the IRS. At the same time the IRS offered amnesty to those coming forward on their own, which resulted in nearly fifteen thousand offshore account holders turning themselves in.

Read more interesting tax tidbits from the last ten years at A look back at the decade in taxes.

If you live in the Jacksonville, Florida area and require assistance with tax planning, please contact our firm for tax planning legal counsel.

Thousands of erstwhile taxpayers who have been sheltering funds in offshore accounts will be brought into compliance with US tax law, according to Internal Revenue Service (IRS) Commissioner Douglas Shulman. The IRS reached a deal with the Swiss government recently, which will give it access to 4,450 UBS AG accounts held by American citizens.

Shulman said that the IRS hopes to eventually gain access to over 5,000 accounts through a voluntary disclosure program. Under that program, investors who have evaded taxes by using a UBS account can report their tax activity and avoid prosecution. Shulman estimated that the accounts in question hold assets of up to $18 billion.

Observers note that this may be the end of an era for tax evaders, who can no longer stash money in Swiss, Cayman Island or Lichtenstein bank accounts without any consequences. Read more about the landmark deal between the IRS and the Swiss government at IRS gets a key to Swiss bank accounts.

Although this program is no longer available to taxpayers, it does show that the IRS is cracking down on tax evasion but also setting up programs for those taxpayers who decide to no longer hide their assets.  Evading your tax responsibility is not a good tax planning strategy. If you live in the Jacksonville, Florida area or north Florida and require assistance with tax planning, please contact our firm for tax planning legal counsel.