Tax experts in Massachusetts are watching a case that involves federal prosecutors charging a Swiss asset manager for tax evasion through offshore trust funds at numerous banks in Switzerland. The 52-year-old citizen of Switzerland could be sentenced to a maximum of five years in custody for the tax crimes. Authorities have charged him with engaging in fraud for at least 13 years and claim he worked with at least five financial institutions in his native country on the scheme.
Massachusetts taxpayers may be interested in the latest statistics on the Obama administration's stance on income tax crimes. As instances of tax refund and other fraud are rising, the Justice Department is doing its part to keep up.
A grand jury returned an indictment on Jan. 15 against a Boston-area photographer who allegedly failed to report income of $87,907 between 2003 and 2007. Charges of tax evasion and filing false tax documents followed an investigation by the Internal Revenue Service.
A recent tax case involving a woman who claimed that she didn't owe tax because she was not an American citizen was sentenced to five years in prison. The woman represented herself and reportedly did herself no favors by being rude and vocal toward prosecutors and the judge in her case. It also didn't help that she claimed over $8 million in tax refunds that she was not entitled to. She tried to claim that she was exempt from paying tax because she was a sovereign citizen, a status that people in Massachusetts and around the country have on occasion tried to claim.
Massachutes residents may be interested in the latest developments in the government's tax evasion case against the billionaire creator of Beanie Baby plush toys. The 69-year-old toy designer pleaded guilty on Oct. 2 to evading approximately $5.5 million in taxes by using undisclosed Swiss bank accounts. In a Dec. 31 filing, his lawyers asked that the accused be sentenced to probation and community service instead of jail.
A Massachusetts man who owns a drywall and plastering business was sentenced to three years of probation, six months of home detention, and three months in a halfway house at the end of a tax evasion case on Dec. 19. The man, owner of P.L Drywall Inc., was ordered to pay a $3,000 fine as well as nearly $200,000 in back taxes. The case stems from allegedly falsified tax returns that concealed over $900,000 in income from 2004 to 2006. According to a report, he reportedly lied about his income during an interview with the IRS.
Massachusetts residents might have heard that six more countries have signed a pact that is intended to stop Americans from dodging the Internal Revenue Service by keeping their money overseas. The agreements are hoped to help cut down tax evasion by individuals who have bank accounts in Bermuda, the Netherlands, Malta and three UK Crown Dependencies, which include Guernsey, Jersey and the Isle of Man, according to U.S. Treasury officials. With these latest agreements, the U.S. has 18 foreign countries or dependencies on board with 11 more looking ready to sign.
Massachusetts residents may be interested in a recent case involving a former California city officialand the Internal Revenue Service. The former city manager pleaded guilty to charges related to tax evasion that were allegedly part of a plan to enrich the accused and other city employees. According to IRS officials, the accused used a corporation to claim hundreds of thousands of dollars in inaccurate losses for tax deduction purposes.
Tax laws in Massachusetts and elsewhere can be complicated and charges of tax evasion are not unheard of. In Chicago, several politicians are currently facing corruption and tax evasion charges. Recently, a former Cook County commissioner was set to begin a six-month sentence after his conviction for corruption.
A Massachusetts man has had two fraud charges dropped after agreeing to plead guilty to tax evasion. The 56-year-old man will now face between two and two and a half years in prison, rather than five. In a recent plea hearing, the man admitted to three counts of tax evasion during the years 2007, 2008 and 2009. His sentence is expected to be decided at a federal courthouse in Boston on Jan 9.