A tax preparer was recently sentenced to serve time behind bars in connection with a number of fraudulent tax returns she apparently filed in 2008 on behalf of herself and a number of other individuals. The 32-year-old woman was reportedly indicted by a grand jury on five counts of refund fraud and one count of making a false federal tax return. According to United States Attorney Joyce White Vance, the woman committed the fraud at a tax... Read More
Case Reminds California Taxpayers Willful Tax Evasion May Result in Criminal Prosecution at State and Federal Level
A 66-year-old Falmouth, Maine man was recently convicted of eight counts of tax evasion following a jury trial. According to prosecutors, the former poker-chip manufacturing company president paid numerous employees under the table in order to avoid remitting payroll taxes to the appropriate governmental entities. The man apparently diverted income taxes withheld from workers’ paychecks to pay his mortgage, legal fees, country club dues, as well as... Read More
Taxpayers in Southern California and Across the U.S. Can Avoid Common Tax Season Pitfalls by Consulting With a Tax Professional
Tax season is in full swing. For most American taxpayers, the federal income tax filing deadline is April 15th. Often, the United States Justice Department chooses to issue an increased number of tax crime indictments during tax season. This can add to the stress associated with accurately filling out your annual income tax forms.
Much of the nation’s criminal tax enforcement efforts are focused on undisclosed foreign accounts. Taxpayers in California and across the U.S. who have an ownership interest in or signatory authority over certain foreign financial assets totaling... Read More
A Laguna Beach, California physician is reportedly facing a potential prison sentence over his failure to file a Report of Foreign Bank and Financial Accounts (“FBAR”) in 2009. According to the United States Justice Department’s Tax Division, the American citizen maintained money in a Luxembourg bank account using a foreign corporate entity that was set up with the assistance of his tax preparer. Prosecutors from the U.S. Attorney’s Office for the... Read More
According to a recent United States Department of Justice press release, a California jury convicted two Los Angeles tax preparers of conspiring to defraud the Internal Revenue Service and willfully failing to file a Report of Foreign Bank and Financial Accounts (“FBAR”). The men will reportedly be sentenced for their crimes in March 2015.
According to evidence offered at trial, the father and son team operated a tax preparation... Read More
A Jamestown, Kentucky man was recently arrested and charged with tax evasion and conspiring to defraud the United States government by using secret foreign bank accounts to hide assets. According to a press release issued by the U.S. Attorney’s Office for the Southern District of New York, the man stands accused of establishing and maintaining several secret financial accounts in Switzerland using a sham foundation so that he could avoid paying his U.S. tax liability. He will reportedly be arraigned in a Manhattan federal court in early December.
The allegations included in... Read More
Criminal Prosecution Reminds Taxpayers in California and Elsewhere to Voluntarily Report Offshore Bank Accounts
According to the United States Justice Department, a New Hampshire businessman recently pleaded guilty to filing a false and fraudulent federal income tax return for the 2009 tax year. The man apparently jointly held a secret offshore bank account in Switzerland with his sister. The high balance of that unreported overseas financial account purportedly reached about $1.3 million in 2009. In addition, the businessman reportedly failed to report his interest in a financial account with an Israeli banking institution on his income tax return.
Interestingly, the man reported... Read More
Long Potential Prison Sentence in Temporary Employment Agency Tax Fraud Case Reminds Southern California Residents to Comply With Federal Tax Laws
In August, four members of a Massachusetts family pleaded guilty to hiding about $25 million from the Internal Revenue Service in an illegal tax fraud scheme. In the case, the defendants, aged 47 to 67, allegedly conspired to structure financial transactions related to their jointly-owned temporary employment agency in such a way as to defraud the United States government. According to the U.S. Attorney’s Office for the District of Massachusetts, the family members failed to report the actual number of temporary workers employed by the agency in an effort to avoid paying the appropriate... Read More
Earlier this month, an 83-year-old Florida man pleaded guilty to hiding up to $1.1 million in undeclared Swiss bank accounts. He also admitted to submitting false federal tax returns and engaging in a conspiracy that lasted for approximately 25 years. According to United States authorities, the man went so far as to move his undisclosed foreign financial accounts to an Israeli bank after learning that the U.S. government was cracking down on Swiss banking institutions for their alleged role in assisting American taxpayers with concealing overseas assets.
In May 2014, Credit... Read More
Business Owner Sentenced to 46 Months in Prison and Ordered to Pay $5 Million in Restitution for Failing to Remit Payroll Taxes to the Treasury
A 57-year-old Pennsylvania man was recently sentenced to 46 months in prison and three years of supervised release, and was ordered to pay over $5 million in trust fund recovery penalties and interest. According to federal authorities, the owner of a Berks County farm collected federal income, social security, and Medicare taxes from the paychecks of his salaried mushroom growing facility employees between 2007 and 2012, but he failed to remit any of the money to the United States Treasury. The... Read More
California Man Sentenced to Prison Time, Incurs Hefty Financial Penalties for Using Foreign Bank Accounts to Commit Tax Fraud
A California medical device inventor was recently sentenced to six months in prison followed by six months of house arrest after he was convicted of using offshore bank accounts to hide assets from the United States government. In United States v. Desai, a San Jose man apparently used numerous overseas bank accounts to conceal nearly $8 million in assets between 2007 and 2009. Although the man reportedly earned at least $1.2 million in interest from the offshore bank accounts over the course of three years, he only paid a total of $17,000 in federal income taxes.
... Read More
Criminal Tax Case Reminds Californians They Cannot Use Offshore Accounts to Avoid Federal Income Taxes
In United States v. Kerr, two individuals and their former attorney were charged with various counts of conspiracy to defraud the United States government by establishing foreign bank accounts used to hide money overseas, willfully filing false federal income tax returns by omitting the income placed in their foreign accounts, and failing to file a... Read More