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The Panama Papers: The First U.S. Conviction for Tax Fraud

In Criminal, FBAR, Panama Papers, Tax Fraud, White Collar by Jason B. FreemanLeave a Comment

A former U.S. resident became the first U.S. taxpayer to plead guilty to criminal tax charges arising out of the Panama Papers data leak.  The Indictment charged Harald Joachim von der Goltz and three others, including a U.S. tax professional, with conspiracy to commit tax evasion, wire fraud, money laundering, and willful failure to file an FBAR, as well as …

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FEDEX Bribe and Contract-Award Scandal

In Fraud, White Collar by Jason B. FreemanLeave a Comment

Five recently unsealed indictments (here, here, here, and here) allege a massive ten-year conspiracy to defraud that involved FedEx Ground Package System, Inc. (“FedEx”) management/employees and several contractors.  The conspiracy allegedly resulted in the wrongful payment of over $280,000,000 to the conspirators.[1] At the center of the conspiracy is FedEx Senior Line Manager Ryan Mower, who allegedly awarded contracts to conspirators …

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Quashing an IRS Summons—Make Sure to Cross Your T’s and Dot Your I’s

In Summonses, Tax Litigation by freemanlawdevLeave a Comment

The United States District Court for the Western District of Tennessee recently issued an order dismissing a taxpayer’s petition to quash an IRS summons.[1] The case provides a lesson in the importance of certain rules that arise in the context of litigating with the government–particularly in the context of seeking to quash an IRS summons.  The court’s order found that the …

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Tax Court Determines §6672 Penalties are Penalties Subject to §6751(b) Requirements

In 6751, Penalties, Trust Fund Penalty by Jason B. FreemanLeave a Comment

In Chadwick v. Commissioner, a recent collection due process hearing (CDP) case, the United States Tax Court upheld an IRS notice of intent to levy. Chadwick v. Comm’r, 154 T.C. No. 5 (2020) stemmed from the taxpayer’s failure to pay employment taxes for two LLC entities for which he was responsible and the subsequent assessment of trust fund recovery penalties …

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IRS Issues Significant Guidance on Foreign Trusts: Forms 3520 and Form 3520-A

In 3520, International Tax by Matthew RobertsLeave a Comment

In 1996, Congress enacted Section 6048.[1]   Under that provision, certain persons are responsible for reporting transactions or relationships with foreign trusts on IRS Form 3520 and/or IRS Form 3520-A.  The failure to timely file an IRS Form 3520 and/or IRS Form 3520-A can result in significant civil penalties and potential criminal referrals.   However, until recently, there has been significant …

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IRS Seizures: The Good, the Bad, and the Ugly

In Levy, Seizures by Jason B. FreemanLeave a Comment

Along with tax penalties and tax lien filings, the IRS’s ability to seize a taxpayer’s property is one of its most potent weapons to encourage tax compliance.  That is, in part, what makes a recent report from the Treasury Inspector General for Tax Administration (“TIGTA”) on IRS property seizures particularly troubling.     Among other things, TIGTA’s review indicated that …

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Fiduciary Duties and Fiduciary Litigation

In Fiduciary Duty, Fiduciary Litigation by Jason B. FreemanLeave a Comment

A fiduciary is a person or entity that stands in a particular position of trust and responsibility to another. A fiduciary has a legal duty to the fiduciary’s principal or beneficiary.  This fiduciary duty describes an obligation to act in the interest of the principal or beneficiary.  It represents the highest standard of care imposed by the law.[1]   A …

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Texas Comptroller Update Regarding Use Tax on Out-of-State Vehicle Purchases

In Texas Tax by Edward CortsLeave a Comment

Beginning on March 1, 2020, a taxpayer who has purchased an off-highway vehicle (“OHV”) outside of Texas must provide proof that they paid Texas use tax on the vehicle when registering it  with their local county tax assessor.  The Texas Comptroller of Public Accounts (“Comptroller”) has stated that affected taxpayers should use Form 01-163 Texas Use Tax Return – For …

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Restitution in Criminal Tax Cases

In Criminal, Fraud, Restitution by Jason B. FreemanLeave a Comment

Victims of federal crimes have a right to “full and timely restitution, as provided in law.”[1] Lacking the inherent authority to order restitution, courts can only order restitution when provided by statute. Once a court has ordered restitution, other governmental organizations play a role in enforcing the order and collecting the restitution, such as the Department of Justice, the Financial …