Tax Law

Recent Posts

Convictions of Mail Fraud, False Claims and Conspiracy; Use of Offshore Accounts
Posted on 2 May 2012 by Jack Townsend

According to a DOJ Press Release, Curtis Morris and Richard Kellog Armstrong were convicted of "for mail fraud, filing false claims against the United States and conspiracy to file false claims against the United States." "Morris was found... Read More

New Indictment of U.S. Tax Return Preparers & Enablers re Offshore Bank & Related Activity
Posted on 18 Jun 2012 by Jack Townsend

In a First Superseding Indictment, here , filed June 14, 2012 in CD CA, three principals of a tax return preparation service, United Revenue Service ("URS") were indicted. The DOJ Tax Press Release is here, Three Tax Return Preparers Charged... Read More

Rambo Judge Grants Mercy to Convicted Foreign Account Holder
Posted on 13 Mar 2012 by Jack Townsend

In United States v. Purpura , 2012 U.S. Dist. LEXIS 28748 (MD PA 2012), Judge Sylvia H. Rambo granted the convicted defendant's motion to withdraw his plea of guilty to two counts of tax perjury, Section 7206(2) related to a false answer to the Schedule... Read More

New Indictment of U.S. Tax Return Preparers & Enablers re Offshore Bank & Related Activity
Posted on 18 Jun 2012 by Jack Townsend

In a First Superseding Indictment, here , filed June 14, 2012 in CD CA, three principals of a tax return preparation service, United Revenue Service ("URS") were indicted. The DOJ Tax Press Release is here, Three Tax Return Preparers Charged... Read More

Pastor Going to Trial for Tax Charges Predicted Jesus Would Come On May 27
Posted on 31 May 2012 by Jack Townsend

I have previously blogged on Ronald Weinland. See Controversial Pastor, Self Proclaimed Prophet, Indicted re Income from Church Offerings and Offshore Accounts (11/21/11), here . My impression from afar is that he is just a charlatan (see here ) in the... Read More

Second Circuit Reverses and Vacates Convictions for Wire Fraud and Tax Evasion
Posted on 1 May 2012 by Jack Townsend

In United States v. Litwok, ___ F.3d ___, 2012 U.S. App. LEXIS 8727 (2d Cir. 2012), here , the Second Circuit upset convictions for wire fraud and tax evasion, applying seeming settled principles. I address first the tax evasion convictions, although... Read More

Ninth Circuit Speaks on FOIA, but Ducks Fugitive Disentitlement
Posted on 17 Mar 2012 by Jack Townsend

A common parry in a tax criminal investigation or prosecution is to file a FOIA request with the IRS. The IRS / DOJ thrust is to resist. I provide at the end of this blog a general discussion of FOIA and the theories of resistance. In Shannahan... Read More

IRS Queasiness Over the Reaches of Allen
Posted on 3 Oct 2012 by Jack Townsend

I have recently blogged on the issue of whether the fraud of some person other than the taxpayer signing the return which makes the return fraudulent allows the IRS an unlimited statute of limitations under Section 6501(c)(1), here . I list below the... Read More

Tax Court Finds IRS Compliance Officer Liable for Civil Fraud Penalty
Posted on 10 Jul 2012 by Jack Townsend

Readers interested in the risks of being audited with respect to income tax noncompliance arising from foreign assets (particularly financial accounts) often ask what it takes for the IRS to prove fraud. I am aware of no standard litmus test of civil... Read More

Trust Fund Tax Convictions Affirmed
Posted on 27 Apr 2012 by Jack Townsend

In United States v. DeMuro, ___ F.3d ___, 2012 U.S. App. LEXIS 8094 (3d Cir. 2012) , enhanced opinion available to lexis.com subscribers, (Non-subscribers can download the unenhanced official opinion here ), the Demuros, husband and wife, were convicted... Read More

Ninth Circuit Oral Argument on Act of Production Doctrine
Posted on 19 Sep 2012 by Jack Townsend

The Record, a California legal publication, reports on oral argument in a case involved the act of production doctrine which says, in effect, that although the contents of documents may not be privileged, a witness under compulsion to produce the documents... Read More

Another UBS Depositor Pleads Guilty
Posted on 4 May 2012 by Jack Townsend

Yesterday, Humberto Gomez pled guilty, according to a DOJ Tax press release, here [the link is not yet available; I will post the link when I have it]. ... The tax loss seems low. The press release says: "For the years 2006 and 2007, the criminal... Read More

Supreme Court Rules Tax Perjury and Aiding & Assisting Are Deportable Aggravated Felonies
Posted on 22 Feb 2012 by Jack Townsend

The Supreme Court yesterday decided Kawashima v. Holder, ___ U.S. ___, ___ S.Ct. ___, 2012 U.S. LEXIS 1084 (2012) , enhanced opinion available to lexis.com subscribers with summary, headnotes, and Shepard's. (Non-subscribers can download the unenhanced... Read More

Defendant Waives Attorney-Client Privilege by Asserting Reliance on FBAR Advice Defense
Posted on 23 Jul 2012 by Jack Townsend

In United States v. Kerr, 2012 U.S. Dist. LEXIS 98836 (D AZ 2012) , a case with two U.S. taxpayers and their lawyer as defendants, the court held that the indicted U.S. taxpayers' claims of reliance constituted a waiver of their attorney-client privilege... Read More

Concerns and Strategies in Parallel Investigations
Posted on 7 Mar 2012 by Jack Townsend

One of the risks in eggshell civil audits -- where risk of criminal prosecution is material -- is the possibility of parallel investigations. Parallel investigations are simultaneous civil investigations and criminal investigations. These can involve... Read More