A father and son have been convicted of federal tax evasion charges after authorities say they sold a hotel and used offshore bank accounts to hide $33 million from the Internal Revenue Service.
Los Angeles tax lawyers and others had been closely watching this case, which was the first trial since the U.S. Department of Justice announced the crackdown on offshore tax evasion in March 2009.
In this case, the 77-year-old father and the 46-year-old son were found guilty of conspiring to defraud the Internal Revenue Service and filing false tax returns, according to Bloomberg News. The men owned hotels under the “Flatotel” brand. Both face up to 11 years in prison.
The IRS touted the conviction as a message to Americans who hide assets offshore. The push by the government in the last several years to crackdown on off-shore bank accounts has included a period of amnesty and other tactics aimed at getting citizens to voluntarily admit to hiding assets. Subsequently, the government has promised to increase the pressure on those found in violation of the law and to push for significant penalties for those facing criminal charges involving offshore bank accounts.
Prosecutors accused the pair of using offshore companies, family members and friends to pose as owners and of forging documents to cheat the IRS. The government contends the father and son owed taxes on undeclared income resulting from the use of mansions and luxury cars that the two claimed were owned by various corporations.
If you are facing criminal charges for tax evasion or charges in connection with offshore bank accounts, contact the Los Angeles tax attorneys at the Brager Tax Law Group, A.P.C. for a confidential appointment to discuss your rights. Call 310-208-6200.