Who should be fined/Jailed for Tax Issues?

[dejr_8]

There have been several celebs who have received fines for failure to pay taxes and one - Wesley Snipes is in jail for three years.

I think the tax preparers/advisors should be the one in trouble. They are the ones that know what they are do (or not doing).

With how complicated taxes are, would you know if a tax preparer was doing a legal job?

 

[bballmom56]

The client is the one who signs the tax return and verifies the information is true. It is the client's responsibility to know what the return contains. Maybe the client can then go after the preparer.

 

[kirbsam]

all the preparer does is use the information the client provides. if the client says that i use my car for business, the preparer then deducts the expenses. if the client is audited and doesnt use the car for business, the client is in trouble.

 

[teskak]

Depends on the fact & degree.

If the client is not using the car for business and directly LIES to the tax preparer - it is the client's problem.

If some how the tax bill is short $3Million, then the IRS would be having a lot of conversations with all parties involved. That will work out who knew what & when.

The tax preparers for the complex matters would want some sort of client sign off as any prolbems affect thier reputations & insurances.

 

[bicker]

It is important to keep in mind the real relationships that exists in this scenario. The primary relationship is a two-party relationship between the government and the taxpayer; it is the taxpayer who decides to bring a third party into the mix, and essentially that third party is basically the taxypayer's agent, in most respects. So the taxpayer bears full burden for the information that they present to the government.

Now, there are two less significant relationships: (1) That between the taxpayer and the tax preparer, and (2) That between the tax preparer and the government. With regard to the relationship between the taxpayer and the tax preparer, if the tax preparer is negligent in their performance of work for the taxpayer, then surely the taxpayer can seek compensation for that poor work, just as they can do for any service provided. With regard to the relationship between the tax preparer and the government, the government has a vested interest in policing all service providers, doctors, lawyers, etc., who may be performing their work negligently or illegally (committing fraud, for example), and so separate measures should be in place to address those needs for enforcement of the public interest.

However, none of that mitigates the obligations of the taxpayer to do what the tax law says the taxpayer should do.

 

[LuvOrlando]

I think that in some cases of outspoken individuals it is fairly easy to prove malice on the part of the person avoiding taxes. You can't be the sort of person who carries on about the invalidity of our tax system, joining groups what are anti-tax ect and them claim "OOPS' when an audit reveals impropriety. Come on, who can believe that tricky little u-turn.

I don't believe the IRS is in the habit of putting everyone in jail who makes a mistake. If the taxpayer was truly misguided by a CPA then the CPA is culpable, maybe not criminally but the taxpayer can absolutely sue to cover losses in civil court then appeal criminal charges... I would and it's why I ONLY let CPAs touch my stuff. It is an individuals responsibility to know the difference between a CPA and a regular tax preparer and to know their legal obligations with taxes.

I do think the IRS SHOULD jail people who DELIBERATELY falsify their info to dodge taxes. As for those who do it through legal means, it's survival of the fittest. Sure sometimes it's shameful, such as a certain VIPs who are running the show but don't want to kick in their fair share of millions such as a certain New Englander who tried to avoid 500K in taxes on a yacht If you can afford the yacht and maintenance on a thing that runs up a $500 K tax bill you can afford the tax bill. I never liked the guy anyway, I don't like do as I say not as I do Ivory Tower types. What a joke. When it's time for put up or shut up and you can't put up, get out of the game.

 

[bicker]

Y'know beyond all this, I question whether jail time is really the correct punishment for tax evasion (specifically), beyond a token amount of jail time as punishment for the fraud, perhaps. Seems to me that a crime about money should be punished via money, perhaps a 20:1 or 30:1 penalty, which can never be set aside via bankruptcy, and with provisions that explicitly state that the person must live in poverty (surely no better than someone living on public assistance), until the penalty is paid in full.

In a way, that could even be a harsher penalty than any jail time: Taking away from someone something that they clearly value very highly, and taking so much of it away that they perhaps never can get themselves out of the realm of living in poverty from that point forward. I wouldn't even worry about the loss of productivity that would stem from taking away from those people the incentive to excel; hopefully it will be a relatively small number of people, and they're not going to be very productive in jail anyway. If that's a big problem for people, then let the penalty include mandated community service.

There is just something that strikes me the wrong way about us having to pay to house, feed and care for someone, when there is another way to administer justice, which might be just as effective. There are surely good reasons why this isn't a reasonable perspective, but I cannot help wondering about it.

 

[LuvOrlando]

double

 

[LuvOrlando]

Being carted off to jail is a unique deterrent. For some people money is not an issue, especially the super rich who have more than they can spend in 10 lifetimes. For them it's all a game but jail is a reality check, look at Paris Hilton, it's hard to think you are above everyone else when you are forced into the same jumpsuit as other criminal... it's humbling as it should be. Tax codes are as legally binding as any other laws and harm society just as much as burglary because tax evasion is, in fact, theft. Yes it's white collar but if the guys at ENRON belonged in jail so do tax dodgers.

 

[bicker]

Fair enough.... taking away the jail time isn't my main interest.... rather adding in much nastier (literally devastating) financial penalties is what I think would be a good thing.

 

[The Mystery Machine]

There have been several recent celebs who have received fines for failure to pay taxes and one - Wesley Snipes is in jail for three years.

I think the tax preparers/advisors should be on the in trouble. They are the ones that know what they are do (or not doing).

With how complicated taxes are, would you know if a tax preparer was doing a legal job?

I understand what you mean however the burden is on the person to make sure the info is correct before you hand it in.

If you are wealthy and unsure of the tax codes, etc., you can have a tax attorney go over it prior to filing.

The burden lies on the person filing and not the preparer. You are hiring them to do a job for you. Obviously hire someone reputable.

Now my own father has avoided taxes my whole life. He would file extensions, not pay, he would get penalties and they would garnish wages. You would think that he would change his ways? Um....nope.
He never hired anyone.

 

[dejr_8]

I understand what you mean however the burden is on the person to make sure the info is correct before you hand it in.

If you are wealthy and unsure of the tax codes, etc., you can have a tax attorney go over it prior to filing.

The burden lies on the person filing and not the preparer. You are hiring them to do a job for you. Obviously hire someone reputable.

Now my own father has avoided taxes my whole life. He would file extensions, not pay, he would get penalties and they would garnish wages. You would think that he would change his ways? Um....nope.
He never hired anyone.

It comes down to trust. You have to hire a another lawyer/accountant to make sure that one that prepared the return did so legally.

In a sense it is like putting the drug user in jail while the drug pusher gets off scott-free.

 

[Planogirl]

I remember when this happened to Willie Nelson. I believe that he didn't have a clue what the person who handled his taxes was doing but he was of course still responsible. The IRS auctioned a lot of his mementos and I thought it was nice that some of this friends bought some of them.

 

[Cheshire Figment]

On all tax returns I do for money I am required to put my name, address and telephone number, as well as a special IRS Registration Number. I can receive severe penalties for knowingly submitting returns with incorrect information. And if they see a problem, they can call up the tax returns of all my clients and do audits on them.

 

[cm8]

There have been several celebs who have received fines for failure to pay taxes and one - Wesley Snipes is in jail for three years.

I think the tax preparers/advisors should be the one in trouble. They are the ones that know what they are do (or not doing).

With how complicated taxes are, would you know if a tax preparer was doing a legal job?

I am not sure who or why but they all should be tried evenly and fairly. How is it that some get off Scott free and the rest get hammered. Consistency is key

 

[shortbun]

In general, I do not think failure to pay or fraud from a single payer should be punishable with prison time. Public work, trash detail, organizing and fulfilling a charitable function and raising large sums of money for the public good, automatic withdrawl of taxes from any remuneration, seizure of property....all good penalties. Our prisons are full and it costs a lot to keep prisoners on a yearly basis. Instead of costing me more money-in addition to their failed payments, make them do the work no one else wants to do.

 

[portocall]

I only allow my CPA mother to touch my taxes and she always triple checks the information to make sure it is right. When I sign off on them I have to make sure they are accurate. My mother has always been very careful to make sure that everything she prepares is accurate however she can't control whether or not the information she receives is. As a client I have to sign off on all the papers and "info" I give her and she keeps a copy of everything in my file. If the IRS comes knocking she has me (or any other client) stating that the info is accurate at least twice so if that is wrong I am in trouble, not her.

 

[rie'smom]

In some cases, the tax preparer has done their job and the client has to mail in the taxes and forms. If they fail to do this, it's their fault and not the preparer.

 

[kaytieeldr]

Sure sometimes it's shameful, such as a certain VIPs who are running the show but don't want to kick in their fair share of millions such as a certain New Englander who tried to avoid 500K in taxes on a yacht

Your concern is appreciated, but it should be noted he would have been avoiding paying taxes to a specific state - nothing at all to do with the IRS. At any rate, that's all been straightened out.

 

[dejr_8]

Sure sometimes it's shameful, such as a certain VIPs who are running the show but don't want to kick in their fair share of millions such as a certain New Englander who tried to avoid 500K in taxes on a yacht If you can afford the yacht and maintenance on a thing that runs up a $500 K tax bill you can afford the tax bill.

Your concern is appreciated, but it should be noted he would have been avoiding paying taxes to a specific state - nothing at all to do with the IRS. At any rate, that's all been straightened out.

I think the point is that the "average john" wouldn't have been given the same treatment by the State of Mass. I'm also certain that the taxes in question would not have been paid if it weren't for the involvement of the media.