The Apocalypse: Feds arrive in Israel

This particular issue has the potential to put the recent money laundering arrests in NJ in its back pocket.

The Mishpacha Hebrew edition reports today -- US Federal Agents arrive in Israel to investigate possible fraudulent US/IRS tax rebates and citizenship/naturalization claims.

The article is all in Hebrew, but here are some salient points: (click images on the right to see them full-sized)

• US federal government is in pursuit of those who "provide incorrect information and receive from the US IRS income tax rebates."
• 13 IRS investigators from the US have arrived in Israel to verify the authenticity of existing documentation
• Department heads familiar with the subject: The investigation will go on for a long time, and whoever submitted incorrect information will find themselves sued to return the money [and face criminal prosecution]
• "The public does not understand the enormity of the problems involved," said one of the company owners that are experts in advancing US citizenship to individuals and families.

"The rumors flew about. The long arm of the US federal government had reached Israel to investigate Israelis with US citizenship who claim IRS tax rebates when they are not entitled to them for various reasons."

In a simplistic nutshell, any dual citizen of the US and Israel who earns annually in excess of certain amounts [$11,750 for '07 and $8,500 for '08] is entitled to a 15% IRS rebate of the excess, up to $1000 per child under the age of 17.

Experts told Mishpacha magazine that while its' legal to (a) get US citizenship for children and (b) request retroactive IRS refunds for up to 3 years -- one may not request a refund for a child retroactively if the child only received citizenship now. Apparently, less than scrupulous accountants and tax preparers have filed claims of this type.

Additionally, in order to receive the "maximum" tax rebate of $1000 per child, the familiy's income must reach a certain level/threshold. The IRS will be investigating whether the reported income filed with the IRS matches what has been reported to Israel's tax agency (mas hachnasa).

As a result of the investigation, tens of thousands of families may find themselves under IRS scrutiny, and those that illegally received US citizenship, illegally filed for tax rebates, or supplied incorrect information will find themselves forced to return the money, with penalties and interests in the best of cases, and in the worst case, find themselves imprisoned with large fines as well.

I did warn you to file the FBAR...

Wherever I am, my blog turns towards Eretz Yisrael טובה הארץ מאד מאד

Jerusalem Astrologers Fail to Predict Tax Authority Raid

All of Israel's astrologers, mystics, numerologists and crystal ball readers failed to predict yesterday's nationwide Tax Authority raid...on the professional fortune tellers, themselves.

The raid included all of the above, included Homeopathic, Chinese medicine and holistic "healers", as well as those who arrange marriages...shadchanim.

Armed with detailed intelligence briefings from newspapers and the internet, the tax authority executed their plan like a military operation.

In one case, a tax authority undercover agent approached an astrologer, requesting help to predict the future for her business opportunities. The agent paid for the "service" and received a receipt without any details of the service she received. The astrologer was then investigated and found not be be keeping her financial books, "in order."

In another case, an agent pretended to be "single" and looking for a marriage partner -- he approached a "shadchan" marriage-broker, paid hundreds of Shekels, and received a list of potential prospects. The agent also had to sign a document that in the event a marriage ensued, he would pay thousands of shekels to the shadchan.

On the day that the tax authorities arrived, the shadchan claimed that she does the service as a "mitzva" (charitable act) and takes no money for her services....till the authorities brought in their undercover agent and reminder her that she made him pay for the "mitzva"...

(source in Hebrew: NRG)

Wouldn't you have thought that at least one of the astrologers would have foreseen the raid?



Wherever I am, my blog turns towards Eretz Yisrael טובה הארץ מאד מאד