Tax troubles can be one of the most stressful, serious financial problems faced by individuals and businesses. Future plans can be derailed by a bank or wage levy, and penalties and interest can become impossible to manage, even when organizations are attempting to work issues out with the Internal Revenue Service.
Having strong negotiation skills and someone with in-depth tax understanding in your court can make a big different in the outcome of a tax audit or bill. However, simply being willing to work toward a resolution is important too. Companies and individuals that ignore tax problems out of ignorance or willful neglect could find that they lose in other areas.
One bank recently pleaded guilty to charges of tax evasion. The company, Credit Suisse, will obviously deal with fines and sanctions, and some individuals in charge of accounting or finances could see criminal charges as well. The guilty plea impacts more than criminal status, though. According to a report, Employees Retirement System of Texas suspended trading with the bank due to the tax issues.
The pension fund, which had a broker-dealer relationship with the bank, said it doesn’t have a timeline for how long the suspension will last. A spokesperson for ERS said it has a policy not to conduct business with other firms that have been convicted of felonies.
According to reports, Credit Suisse was the subject of a long-term investigation by the United States Justice Department. The bank reportedly pleaded guilty on May 19. According to the U.S. attorney general, Credit Suisse was charged with helping taxpayers avoid paying taxes through illegal and undeclared offshore accounts. The bank is to pay $2.6 billion in fines, say reports.
Source: aiCIO, “Texas Pension Drops Credit Suisse After Guilty Plea” Sage Um, May. 22, 2014