Government Investigating HSBC Clients for Tax Evasion

The Justice Department is investigating HSBC (HBC) clients who may have failed to disclose information about accounts held in India and Singapore, Bloomberg News reported, without naming its sources.

At least one client received a letter from the Justice Department saying the department had reason to believe the person held accounts overseas without reporting them to the IRS. The letter did not mention HSBC.

"It's clear that the IRS and the Department of Justice are intending to pursue other depositors outside of Switzerland," Barbara Kaplan, a tax lawyer at Greenberg Traurig LLP, told Bloomberg News. "They've announced it before, and they are moving forward in that regard."

Last year, Swiss bank UBS (UBS) avoided prosecution by admitting it helped people avoid paying taxes from 2000 to 2007. The bank paid $780 million and agreed to disclose information on over 4,500 clients. Seventeen UBS clients and two bankers have been prosecuted since then.

Video: Debt Cancellation and Your Taxes Explained

Having your debt cancelled may square you with your creditor, but that debt may still be taxable. This video will help you determine whether you need to report your cancelled debt to the IRS.

Read More

Brought to you by TurboTax.com

Claiming a Non-Citizen Spouse and Children on Your Taxes

When your spouse and children are U.S. citizens, claiming them on your taxes is simple: just provide their names and Social Security numbers. When they're non-citizens, though, things may be a little more complicated. But you can still claim them—and reap the tax benefits of doing so.

Read More

Brought to you by TurboTax.com

What is IRS Form 8824: Like-Kind Exchange

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

Read More

Brought to you by TurboTax.com

Tax Strategies for an Early Retirement

Retirement. The word sounds so good to so many people because of what it implies: a life of leisure, free of the daily grind of workdays that last at least eight or nine hours and as many as 10 or 12 if you are unlucky. But there is one thing from which even retirement does not excuse you: paying taxes.

Read More

Brought to you by TurboTax.com
Read Full Story