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
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
A panel of three federal judges is now considering whether an American businessman should get prison time for tax evasion related to about $24 million in unreported income earned from two Swiss bank accounts. Last year, the man pleaded guilty to one count of tax evasion and received a probation sentence. A Chicago judge also ordered him to serve 500 hours of community service at local area schools. In a rare sentencing appeal, federal prosecutors asked the nation’s Seventh Circuit to instead remand the businessman to a federal penitentiary. If the panel of judges agrees, the businessman... Read More
Earlier this month, a judge delayed sentencing for a member of a prominent New York family who pleaded guilty to tax evasion in 2010. In the case, the woman’s father apparently left her and her siblings millions of dollars that were stored in a secret offshore account. Rather than report the Swiss bank account to authorities, however, the siblings allegedly developed and implemented a tax-evasion scheme using the advice of a financial adviser. Although the woman was the first member of the family scheduled to be sentenced in the conspiracy, the federal judge determined that her sentencing... 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
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.
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The United States Court of Appeals for the Third Circuit has affirmed a district court’s prison sentence and restitution order in connection with a couple’s willful tax evasion. In United States v. Basile, a husband and wife opened a chiropractic practice together in Pennsylvania and timely filed an income tax return that included the income they earned from the... Read More