IRS News

Massachusetts Chicken Eatery Owner Sentenced for Fraud

A New York man who had an ownership stake in 11 fried chicken restaurants in the Boston, Mass., area has been sentenced to two-and-a-half years in prison for tax, insurance and immigration fraud. Federal prosecutors say 58-year-old Hazrat Khalid Khan, …

California Workers’ Comp Medical Mileage Rate Will Decline for 2017

The Internal Revenue Service has announced that the standard mileage rate for business miles will decline 0.5 cents per mile to 53.5 cents per mile as of Jan. 1, 2017. The California Workers’ Compensation Institute said this means the mileage …

Survey Shows Many Americans Fine with Lying to the IRS, or Their Insurer

Call it a “little green lie.” A number of Americans apparently find it acceptable to lie when there’s money at stake. A survey of 2,115 American adults from NerdWallet conducted in February shows a surprising number of people will fib …

IRS Scrutiny of Offshore Tax Avoidance Repels Bids for Bermuda Reinsurers

The IRS’s scrutiny of tax avoidance in offshore locations has discouraged bidders from taking over reinsurers, potentially reducing the companies’ value. Montpelier Re Holdings Ltd. and Platinum Underwriters Holdings Ltd., both based in Bermuda, have each said in recent regulatory …

Hedge Fund-Backed Bermuda Ventures Could Be at Risk From IRS

Investment vehicles set up by Paulson & Co. and Highbridge Capital Management in tax-friendly Bermuda may be under threat from the U.S. Internal Revenue Service. The IRS, in proposed rules published Thursday, said that the favorable treatment enjoyed by insurers …

Two Legacy Network Executives in Idaho Sentenced

The former founder and chairman of the board of The Legacy Network, an insurance brokerage agency in Rexburg, Idaho, and his son were sentenced on Wednesday in United States District Court in Pocatello. The sentencing was announced by U.S. Attorney …

IRS Says It Has No Role in Enforcing Health Insurance Mandate

The Internal Revenue Service on Tuesday assured congressional lawmakers that agents would play no role in enforcing the controversial requirement that Americans buy insurance under President Barack Obama’s healthcare overhaul. “IRS revenue agents will not be involved. There will not …

AIG Files Lawsuit Against IRS Seeking $30.2M in Tax Interest

American International Group, the insurance giant saved by a massive federal bailout, wants some tax money back — from 1991. AIG is suing the Internal Revenue Service (IRS) in Federal Claims Court in Washington, D.C. for $30.2 million. It says …

HP Loses Battle with IRS Over Tax Shelter Designed by AIG

Hewlett-Packard Co. on Monday lost a battle with the U.S. Internal Revenue Service for more than $190 million in tax refunds tied to a Dutch tax shelter designed by the derivatives arm of American International Group. The ruling turns a …

IRS Gives Employers Break on Misclassified Employees

The Internal Revenue Service is offering a break to employers who come clean about wrongly classifying workers as independent contractors to avoid paying federal payroll taxes, the agency announced this week. What happens when workers are considered independent contractors? Employers …