“Will I get caught?” is one of the most common questions asked by potential tax cheats. The temptation to cheat the IRS is overwhelming for thousands of Americans. While no one knows whether and when they will be caught, the IRS has become much better at finding those who evade taxes. One of the best […]
Captives and Life Insurance – A Deadly Combination
We have posted several articles on captive insurance fraud and each one has prompted a certain amount of controversy. That’s good because it get people thinking. Unfortunately, as fraud recovery lawyers, we see cases where investors lost battles with the IRS over captive insurance programs. Even worse, we often see captive insurance programs that are […]
IRS FBAR Whistleblower Post – The Waiting Is Over
[Post updated 2020] We have been warning people for years that the day of reckoning was coming. Sure, there were some false starts and last minute political moves, but the waiting is over. In 2013, Switzerland and the United States reached an agreement where the Swiss will begin releasing the names of thousands of U.S. […]
Abusive Tax Shelter Results In $100 Million Assessment (IRS Whistleblower Post)
None of us enjoy receiving letters from the IRS. Some might argue and claim a refund is a nice thing to receive from the IRS but those checks come from the U.S. Treasury. While often a letter from the IRS signals an audit or notice saying that you owe more money, former HP board member […]
When Public Officials Don’t Pay Taxes – IRS Whistleblower Post
by Brian Mahany Remember the Nannygate scandal? The scandal originated in 1993 when President Bill Clinton nominated Zoe Baird to be the United States Attorney General. That nomination didn’t last long; reporters quickly learned that Baird and her husband had hired two illegal immigrants from Peru to care for their child. They also didn’t withhold […]
Former CPA Gets 3.5 Years in Prison, $100 Million Restitution For Tax Evasion Role
by Brian Mahany A former CPA and banker at Deutsche Bank AG was sentenced to 3-1/5 years and ordered to pay $115,700,000 for his role in helping clients evade taxes. David Parse will have to serve about 3 years before eligible for early release. He was convicted of mail fraud and obstruction charges. Prosecutors say […]
Top Tax Scams – Are You On The IRS' Radar?
by Brian Mahany With just 2 weeks before taxes are due, the IRS has cranked up their publicity machine. Indictments, public service announcements and lots of information. One of the more interesting stories is the IRS “dirty dozen” tax scams. While identity theft occupies the number 1 spot again, several “scams” warrant special mention. Near […]
IRS Wins Tax Shelter Case – Will Claims Of Accounting Malpractice Follow?
by Brian Mahany Earlier this week the United States Tax Court ruled in favor of the IRS in a widely watched corporate tax shelter case. The test case, involving Bank of New York Mellon, could cost the bank $800 million. Although BONY has promised to appeal, the loss may create a waive of accounting malpractice […]
Captive Insurance Scams
by Brian Mahany It didn’t take long. On July 18th we wrote about the new IRS audit push on captive insurance companies. Unless very carefully crafted, the IRS considers most to be abusive tax shelters. This means big penalties if you misuse one to avoid taxes. Unfortunately, the captive insurance market has attracted its fair […]
IRS Warns of Payroll Processing Fraud
by Brian Mahany Just 2 months ago (July 5th) we warned of various payroll processing frauds that prey on small businesses. The IRS must have been listening since they too just issued a warning. Because these frauds can bankrupt a business, the warnings bear repeating. Many small and medium size businesses outsource their payroll processing […]