It was only around two years ago when a father and son were suspected of preparing false tax returns for their clients. In mid-August 2015, the Department of Justice announced that the owners and operators of the family owned company, the United Revenue Service Inc., were guilty of conspiring with their clients to prepare false returns which intentionally neglected to share their clients’ concealed foreign financial accounts and foreign income.
The United Revenue Service Inc. has twelve offices throughout the United States, all of which were a part of an elaborate sham which included concealed financial counts in two Israeli banks and fake companies in Belize and other countries. The accounts in the Israeli banks were held by these fake companies, and funds which were falsely reported as being business expenses or investment losses were transferred into these secret accounts.
Not including themselves, three clients of the United Revenue Service Inc. have pleaded guilty to their role in this grand scheme. One client was able to avoid prison time because of his cooperation in persecuting the Kalais. He has also agreed to pay a stiff civil FBAR penalty of $4.2 billion. The guilty father, David Kalai, was sentenced to serve 36 months in prison, and his son, Nadav Kalai, was sentenced to 50 months.
Clamping Down on Offshore Tax Evasion
In recent years, the DOJ Tax Division has been working tirelessly on prosecuting those involved in offshore tax evasion and unscrupulous return preparers. Tax preparers such as the Kalais who have been found guilty of these activities are being made of an example of as a stern warning to the public.
Because of this, tens of thousands of American tax payers have voluntarily disclosed all of their foreign account information to the IRS as part of voluntary disclosure initiative.
Should I Disclose My Information?
Before you consider jumping on the bandwagon and disclosing your information to the IRS, it is important to speak to a professional tax attorney like Scott Scammahorn at the Scammahorn Law Firm, P.C. in Texas. We have the experience and the knowledge necessary to guide clients through any number of tax issues with minimal (if any) penalty.
If you have received a notice from the IRS or have questions about your unique situation, we are here to help. We invite you to call the Scammahorn Law Firm P.C. today at (903) 595-1000.