In his 2003 book “Perfectly Legal” writer and investigative reporter David Cay Johnston delves into the U.S tax laws. His mission was to show how the very rich escape– in a perfectly legal fashion–the paying of taxes. The book raised both eyebrows and concerns. Is the U.S. tax system rigged […]
Category: Tax Evasion
To cut to the chase: no. In order for you to be charged with and found guilty of fraud, the mistake has to be “willful.” You have to have what we in the legal world calls mens rea- or a guilty mind. You need a guilty mind to prove intent. What […]
Anyone who’s ever flown first class to Europe knows that it makes a difference. When you are gastronomically pampered with a five-course French meal, including a cheese selection and a buttery croissant, that is also expertly paired with a 68-degree Bordeaux or bubbly Comtes Grand Cru AND you get to […]
If you are wishing to avoid criminal prosecution and be compliant with The Foreign Account Tax Compliance Act (FATCA) you will need to accurately report on any foreign financial accounts and foreign assets you or your company or business entity holds. In November of 2018, the IRS issued new guidance […]
Essentially a lifestyle is triggered when a person’s assets do not match their reported income. Through the lens of the IRS, the thinking goes something like this: If you own a mansion, a second or third vacation property, an expensive car, and a personal jet, it seems unlikely that your […]
Intention, more times than not, is a “catch-all” criminal charge. Why? Because you do not have to prove someone actually DID something, only that they were going to do something, or acted with intention. So, the intent is not the actual doing of something, it is the mental preparation to […]
The ways in which people handle money differ from person to person. For some, using offshore accounts may make sense for their financial situations, particularly if they hope to gain some kind of tax advantage. However, if parties do not report the necessary information regarding their foreign accounts to the […]
The Department of Justice (DOJ) recently announced a physician accepted a plea deal after facing accusations of tax evasion. The government stated the physician failed to report on his tax returns for 20 years. Was it an accident? In most cases, a prison sentence tied to a tax crime involves […]
The federal government has continued its crackdown on tax preparation professionals. A recent case provides an example. Details of the charges The Department of Justice (DOJ) recently charged a tax preparation professional out of Georgia with fraud and false statements in a federal indictment. The charges are the result of […]
Use of foreign banks to hide assets is a well-known tactic for avoiding tax obligations. We know that individuals who attempt to avoid their taxes can face criminal charges that lead to high financial penalties and potential imprisonment, but what happens to a bank if it is complicit in the […]