Nobody — no matter how rich, famous, or politically influential — is 100 percent safe from the grasp of the IRS. This is clear in the aftermath of the election, as President-elect Biden’s son Hunter continues to face major drama with the IRS, along with an investigation by the Justice Department. Areas of concern include possible criminal tax violations or even money laundering.
While your current tax issues may not achieve the public spectacle of the Hunter Biden fiasco, several lessons can be found in the challenges he’s facing. We’ve outlined a few of the most notable below:
Gifts Versus Income
An international element complicates Hunter Biden’s tax affairs, but the confusing line between gifts and income also appears to be at play. After all, what appears to be a gift may be deemed income based on IRS standards.
Such was the case with a 2.8-carat diamond provided by former CEFC China Energy chairman Ye Jianming. The tax reporting implications of this remain a matter of contention, especially given disputes surrounding the diamond’s value.
The Need for Accountability
The takeaway for everyday taxpayers? While we might not all enjoy access to expensive diamonds, it’s important to determine early on whether any gifts of value can be classified as income. If so, these must be reported to the IRS.
Remember: while Hunter Biden’s diamond itself may be cause for concern, the confusion surrounding this gift could prove even more problematic. This is doubly true when foreign income and assets are at play.
Don’t risk landing in hot water like Biden. When in doubt, opt for full transparency, delivered alongside a tax resolution specialist you trust.
No matter the scope of your IRS problems, you can count on the team at the Highland Tax Group for help. Reach out today to learn more about our tax resolution services.