“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 […]
Offshore Tax Evasion Update – By The Numbers
We frequently post stories about both Americans and foreign bankers prosecuted for tax evasion involving unreported offshore accounts. U.S. taxpayers are usually prosecuted for filing a false tax return (a 3 year felony) or failure to file an FBAR (5 years). Bankers, lawyers and accountants associated with these taxpayers are frequently charged with conspiracy to […]
Tax Evasion Update – HSBC Whistleblower In High Demand
Twice before we wrote about Herve Falciani, a former computer specialist for HSBC bank in Switzerland. Falciani is a fugitive from Swiss authorities but welcomed in other European countries. Why? Because he allegedly stole the names of 130,000 client names from his former employer; names that are probably responsible for billions in unreported foreign accounts and […]
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 […]
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 […]
Charges Against US Lawyer Proceeding – Red Flag For CPAs and Lawyers That Have Clients With Offshore Accounts
[Updated 2021] Previously we reported on California attorney Christopher Rusch after he was indicted and arrested for helping two clients establish unreported foreign accounts. Rusch initially denied the charges but court documents released this month suggest he may have cut a plea deal with prosecutors. The case is being closely watched by those with unreported […]
New Directive Says IRS Can Seek Metadata
An Information Letter Memorandum issued by the Chief Counsel of the IRS (ILM 201146017) says the IRS can summons metadata from taxpayers. Just about everything we do on a computer carries a trail of metadata. This stored information tells how data was formatted, modified and created. For those not familiar with metadata, we take our […]
Monkey See, Monkey Don’t – Help for Human Trafficking Victims
[Post updated 2021] Most of the articles we post are designed to help people who themselves the victim of fraud. Sometimes, innocent people find themselves victims of human trafficking. This a grim tale of a cop turned trafficker, former IRS Special Agent Kemp Shiffer. Afterwards we discuss how victims of trafficking can get help. Several […]
Feds Target CPA’s, Lawyers – IRS Whistleblower Post
[Post updated March 2021] When this post was written ten years earlier, the Justice Department had just convicted the former chairman of prominent CPA firm BDO Seidman as well as two attorneys from Jenkens and Gilchrist. The three were convicted for for their role in a massive scheme to promote abusive tax shelters. The government […]
Tax Preparer Fraud and IRS Whistleblower Rewards
Tax Preparer Fraud Is Rampant In February 2020, Myles Hannigan was sentenced to 52 months in prison. When he gets out, he must pay the IRS $3,270,566.89. His crime? Filing false tax returns on behalf of his customers. Hannigan ran a payroll business. Or should we say, “was.” When he isn’t allowed to handle other […]