19

Money Laundering The primary crime that you have described is called money laundering. Note that money laundering includes: "structuring financial transactions in order to evade reporting requirements." Unlike some other forms of money laundering, this does not require that the source of the funds be criminal, or that the actual transfer be criminal, so ...


14

You will probably not be able to take a tax deduction for this. The IRS requires that the space that you use for your home office is that the portion of your house is exclusively and regularly used for business purposes. It also must be the principle place of your business. Some employees can use the home-office deduction, but there are tests there too: ...


13

I have submitted a false tax return Provided it really is false, you violate 18 USC 1001: (a) Except as otherwise provided in this section, whoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully— (1) falsifies, conceals, or covers up by any ...


11

They aren't "imposing tax laws at the state level", and the states are still perfectly free to award whatever credits they like. There's a more complete explanation here. Before 2017, if you paid, say, $30,000 in state taxes, you could take a $30,000 deduction from your federal taxable income, thus reducing your federal income taxes by some fraction of $...


6

I don't think any of it is a crime And it sounds like a lot of work to me. Getting overpaid for it doesn't make you a crook, just one of many overpaid people in society today. Remember, you assure us this is legal, and the only part you are questioning is routing it through you. He can pay you money for any service, or to sleep on the job, or simply to ...


5

It's always amazing to me why some people find it so difficult to understand, just because the word "crypto" is involved. It goes like this: Cryptocurrency is an asset, like any other asset. It's also a currency, but that part can be ignored for this purpose. Buying an asset, any asset, is (usually) not a taxable event. "Buying" in this case consists of ...


3

The transaction you describe is a "taxable gift" to the extent that it exceeds $15,000 in fair market value (as of 2019) and that your significant other is not your U.S. citizen spouse now (special rules apply to non-U.S. citizen spouses and an unlimited amount of gifts can be made without being taxable to a spouse, including a same sex spouse). The first $...


2

Would that itself raise any red flags/point out legal issues? to what end is it a "late fee" vs. "imprisonment for tax evasion?" A taxpayer's voluntary payment/filing of overdue taxes is very unlikely to lead to imprisonment or prosecution. Here voluntary means that the tax department (example: IRS in the US) did not even have to allocate resources for ...


1

First of all, this is probably not legal, either because it is in substance an effort to avoid immigration laws, because the workers are inaccurately classified as independent contractors when they should be classified as employees, or because it amounts to money laundering. It also would be a violation of immigration laws to the extent that someone knew, or ...


1

The organization has to be organized and operated exclusively for exempt purposes, which the IRS characterizes as charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its ...


1

Yes, it is legal under US tax law. US tax law is concerned with collecting tax. The questions that tax law asks are Must the income be declared to the IRS? Is the income taxable? How much tax is due? Whether US tax law requires the income to be declared or considers it taxable does not depend on whether it is paid to a US or foreign bank account. This ...


1

Is this company required to file taxes for the previous year, and if they don't, will they face any punishment? Yes. Every corporation is required to file an IRS Form 1120 every year (the same rule does not apply to trusts or limited liability companies), even if it has no revenue or expenses. See 26 USC § 6012(a)(2) and Treas. Reg. § 1.6012-2 ("Except as ...


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