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Tax carrot + stick nab 14,700 scofflaws

November 18, 2009

Federal investigators are feeling pretty darn good about themselves right now. 

After a persistent effort to get info on taxpayers they believe hid money subject to U.S. taxes in offshore accounts, the Department of Justice and IRS announced yesterday that more than 14,700 taxpayers have 'fessed up about their previously-undisclosed foreign bank holdings.

"We have now gained access to thousands of taxpayers and bank accounts that we have never had before," said IRS Commissioner Douglas Shulman, adding that it had sent "a shock wave around the world."

You can forgive the commish for being perhaps a bit hyperbolic. It's not every day that you get almost 15,000 folks to confess to trying to evade taxes.

Of course, having an amnesty period in which offshore account holders could turn themselves in certainly helped.

But joining that carrot was the stick that includes penalties for folks who keep hiding their money from the IRS but eventually get caught.

And getting caught might be easier in the near future, as the Swiss are said to be considering new safeguards to cover their derrieres when it comes to foreign account owners.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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