Specialists Can Keep You Out of Hot Water

January 16, 2014  |   Posted by :   |   Blog   |   0 Comment»

handshakeWhen you take funds from a tax exempt money generator like municipal bonds and you invest them in an account that makes more in interest than the bonds are issued at, the interest that is above the amount of the issued bonds is called arbitrage. While that may seem fairly simple, there are other times that are more complicated that may be subjected to arbitrage. If you are involved with any funds that are loaned and tax exempt, then you will want to know if you are subjected to the laws involving arbitrage. You could choose to read up on the subject, but all that will do for you is give you a bare bones understanding of what can be a really complicated subject. Your best bet is to get a team of arbitrage compliance specialists to help you out.

The IRS and Tax Law

If you know anything about the greatest mob boss of all time, you know that he wasn’t caught by the cops, the FBI, or any other law enforcement agency. Al Capone was nabbed by the IRS for evasion of taxes. A man who was allegedly responsible for more crimes than anyone could count got caught by the IRS. That makes a scary organization even scarier.

You don’t want to mess with an organization like that. When you don’t understand the rules, you might be guilty of breaking them, and tax law isn’t the easiest thing to understand. It should be. However, there are enough loopholes and hidden pitfalls that it is important for most people to get some help with their taxes. For businesses, it is imperative.

Lawyers

The old adage says that any man who represents himself in court has a fool for a client. This same thing could be said for any person who represents his or herself in front of the IRS. Because you don’t know the rules of negotiation or the way that a tax meeting should go, you may find yourself facing a tax agent who is only interested in the rules and not interested in leniency or anything else. To get the best protection, you need to hire someone who understands the rules as well as the IRS.

Arbitrage

Quite frankly, you want to avoid anything that may look like it deserves to be audited. This is where your team ofarbitrage compliance specialistscomes in. By having several people around who can help make sure that you are following all of the rules and declaring that which needs to be declared, you are going to be able to mitigate any problems that may otherwise pop up. The team won’t be able to stop the IRS from auditing you, but they will be able to have all of the information in place for those times when your number is called. Following the law when it comes to arbitrage is necessary for your company. There is no way around it; you just want to make sure that you are doing it right.

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