With the end of the calendar year fast approaching, many residents in Minnesota may be eyeing ways of maximizing tax deductions in the last few weeks of the year. This is nothing new and is actually a well-accepted practice among consumers and businesses alike around the nation. However, there can be many fine lines between what is considered a legitimate means of reducing one’s tax burden and what is a potential illegal violation.
One man who was the head of a major accounting firm for a span of 10 years at the start of this century ran the entity during a time when its accountants are accused of having illegally helped clients avoid their legitimate tax responsibilities. Over the period of many years, as many as 200 clients are said to have not paid up to $2 billion in taxes that they may otherwise have without the assistance of the accounting firm’s employees.
Just four years ago, the firm actually paid to the United States Treasury the amount that it reportedly earned from those clients. That amount totalled $123 million and the payment was ordered by the U.S. Department of Justice. The man who was the accounting firm’s director for 10 years has recently been named as the new commissioner of the Internal Revenue Service.
When Minnesota residents have concerns about potential criminal tax allegations, they may find talking with an attorney helping in learning about their options for defending themselves.
Source: The Daily Beast, “Trump Installs Tax-Dodging Expert as the Head of the IRS,” Betsy Woodruff, November 10, 2017