The IRS is Catching the Big Fish

27 Sep

The IRS continues to uncover abusive tax-avoidance schemes involving offshore activity. For a list of those convicted and the penalties imposed on them, go to the IRS website. There’s a lot of them and more are going to be added. (Note that this link has been updated on October 5, 2012 to reflect a change in the IRS web site as the previous link was to a blank IRS page. It also represents more recent indictments.)

And to you little minnows, I say:

Don’t get caught in the net with the big cheaters. Be honest and declare and pay the taxes that, by law, are relevant to you. This is good citizenship. This is being honest. Don’t give the IRS an excuse to bear down on expats who comply, file and pay. The more of these thieves that are discovered, the more the IRS will try to dig into your privacy and try to intimidate you. Don’t give them a reason to do it.

Phew, all this exhausts me. I have to get back to defending myself in my audit and prove that I am a bone fide resident of Israel. I have to get certified translations of my Israeli tax reports, my real estate tax receipts, verification of work at the HMO, and proof of travel dates of exit from and entrance to Israel from the Ministry of the Interior. Is there anything else that you can think of that will convince them of the obvious truth that I have lived here for the past 19 years, during which time I have filed my 1040 every year and also the FBAR every year since 2007 (not sure of the exact year, except that when I realized I had to do this, I also filed for the previous 3 years)?

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