$14 Million Civil Penalty Charged for Failure to Report Offshore Accounts

A U.S. permanent resident from South Korea pled guilty on October 26th to charges of failing to report offshore bank accounts to the IRS. Hyung Kwon Kim, a resident of Connecticut and citizen of South Korea, admitted to holding unreported Swiss bank accounts, which were concealed through a number of entities based in offshore tax havens. Mr. Kim also admitted to filing false tax returns from 1999 through 2010, in which he omitted the income generated from his offshore Swiss accounts. In addit...

New York Attorney Pleads Guilty to Tax Evasion

On Thursday, October 12, 2017, Herbert Lindenbaum, a personal injury and medical malpractice attorney, pled guilty to tax evasion, following a nearly two-decade scheme to evade $3.4 million in taxes.  The scheme involved paying family members for work they did not do in order to create the appearance that his firm was earning little to no income, disguising income by depositing business funds into his wife’s personal account, and using his firm’s funds for personal expenses.  Lindenbaum faces up...

Ex-UBS Banker Advocates for Whistleblower Protections

Former UBS banker turned whistleblower Bradley Birkenfeld has called for changes in the Swiss law to protect whistleblowers, as detailed in a recent interview with Bloomberg BNA. Birkenfeld was awarded $104 million in 2012 by the U.S. government for testifying about Swiss bank UBS’s asset protection programs for U.S. taxpayers. His testimony led to wide-ranging probes by the U.S. government into UBS’s activity and culminated in the collection of more than $5 billion in penalties by the U.S. gove...

The 2015 Maryland Tax Amnesty Program

The Maryland General Assembly recently passed a bill on April 6th, 2015, providing tax amnesty to qualifying taxpayers from September 1st, 2015, through October 30th, 2015. Approved by Governor Larry Hogan Jr. and scheduled for enactment on June 1st, 2015, the Tax Amnesty Program will “waive certain penalties and interest imposed for the nonpayment, non-reporting, or underreporting of certain taxes under certain circumstances.”   These penalties and interest include all civil penalties except fo...

Tax Avoidance Business Owner Liable for Six Years of Unfiled Returns

Peyton Mottahedeh, president of a California business that encourages income tax evasion, has been found liable for taxes and penalties relating to six years of unfiled federal tax returns. Mottahedeh’s business, the Freedom Law School, advocates for tax avoidance practices such as refusing to file tax returns and maintaining marginal financial records.  After six years of unfiled returns, the IRS began an audit of the Mottahedehs in 2008, a process that eventually resulted in the case being hea...