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X KMPG Partners Going To Trial For Tax Evasion

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 Reuters reports, Reuters Article, that four former KMPG partners are going to trial on charges of allegedly cheating the government out of more than $1 billion through the use of improper tax shelters for hundreds of wealthy clients.  The trial is scheduled this month. 

 The four men are charged with conspiring to evade taxes for more than 600 clients in a case that was touted as the largest criminal tax prosecution when it started in 2005 with 13 defendants.

 The four men are charged with conspiring to evade taxes for more than 600 clients in a case that was touted as the largest criminal tax prosecution when it started in 2005 with 13 defendants, but is much smaller now.

Remember to keep clean with your taxes.

Bill Lowrance

States To Increase Tax Enforcement Efforts

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 Seal of the Commonwealth of Virginia.  According to an Associated Press article, many states are increasing tax enforcement and collections efforts as state revenues decline in our present economic condition.

States like New York, California, Massachusetts and Illinois are “beefing up” tax enforcement and collections.  You can believe Virginia will, and is, doing the same thing.  Sometime ago Virginia contracted with a collection agency in Livermore, CA, to collect past due taxes.  This collection agency, Diversied Collection Services, Inc. gets taxpayer information from the Virginia Department of Tax.  The agency starts calling and writing the taxpayer demanding payments. Check out the Virginia Department of Tax Here

I spoke to a person identifying herself as Fay Miller at Diversied the other day.  I called on behalf of a client who, in the past, did not have money to pay taxes.  Well, Ms. Miller demanded full payment of the client’s tax bill.  Of course, this was done without the Virginia Department of Tax contacting me as the representative of my client.  But, that is another story I will talk about later.

States are facing budget and revenue problems.  The taxing authorities will be increasing enforcemnt efforts against companies, small businesses and individuals.  Now that may mean turning over collection to collection agencies.  I am appalled that the states, especially Virginia, contracts with a collection agency in California to contact Virginia taxpayers using the famous and infamous collection agency techniques. 

I hope to find out more information about the Virginia contract with this collection agency and the process used to collect past taxes.  Of course, everyone should file returns and pay taxes on time.  The facts are, however, that some people have hard times and cannot pay the tax due.

Anyway read the entire AP story Click Here

Bill Lowrance

Your Virginia Tax Attorney www.lowrancelaw.com

Offshore Accounts IRS and Tax Evasion

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How much money do you have in your offshore bank account?  That’s right.  Some people attempt to hide money and other assets in foreign countries–out of the US and, supposedly, hidden from the IRS.

Many private investigators and attorneys search for hidden, offshore accounts.  Sometimes the money or other assets are hidden from a spouse in preparation for a divorce.  Sometimes money is shuffled offshore to evade taxes.  Tax evasion is a federal crime, as we all know.  It is even a felony, too. 

Helio Castroneves, a U.S. resident and two-time winner of the Indianapolis 500, was recently indicted by a grand jury  on charges of conspiracy to defraud the United States of income taxes and with six separate counts of income tax evasion for tax years 1999 through 2004.  

His sister and business manager, Katiucia Castroneves of Miami, and his attorney, Alan R. Miller of Michigan were also indicted.  The crime, using an offshore Panamanian shell corporation to fraudulently conceal income received from business deals.  Helio Castroneves received $6,000,000 in a three year contract, kicked back $5.4 million, kept $600,000 and only reported $50,000 on his federal income tax returns.  Well, with that the IRS and the US Justice Department got busy.

In another scheme, like one was not enough, the three defendants hid $5,000,000 in an offshore “deferred royalty plan.”  It is a complicated scheme, legal under certain circumstances, but not legal in the way these three carried out the scheme.  The bottom line is that Helio earned the $5,000,000, allegedly lied about his control over the money and did not report any of the money as income.  Well, the IRS jumped on that one too.

Take note of the governments statement on this story:

“Taxpayers, small and large, famous and not famous, should be aware of the enormously severe consequences they face if they fraudulently use offshore accounts to hide income, including potentially going to prison, paying back all their taxes plus interest and penalties, and being branded a felon for the rest of their lives,” said Nathan J. Hochman, Assistant Attorney General of the Justice Department’s Tax Division. 

“Whether one makes a living parking cars or racing them, paying taxes is a responsibility that everyone shares. Our tax laws apply equally to everyone, regardless of status, class and income, and the U.S. Attorney’s Office will prosecute these cases vigorously,” said U.S. Attorney Acosta.

Hey, read the whole story: Click Here

But, remember to play straight with income and paying taxes.  You do not want the IRS and/or the US Justice Department involved in your life.

In my next post I will talk about Switzerland disclosing secret bank account information to the IRS and the US Department of Justice. 

Bill Lowrance