Crime doesn’t pay
While most taxpayers strive to file honest tax returns, some try to defraud the government. In one case, a Miami man pleaded guilty to hiding more than $20 million in Swiss bank accounts for decades.
In the complex case, the IRS uncovered many false statements and claims the taxpayer made to evade detection. Upon learning that Switzerland had agreed to provide the IRS with documentation of his dealings, the man applied to participate in the IRS voluntary disclosure practice.
This practice allows noncompliant taxpayers to get on a path to resolve their issues. However, the IRS found that the taxpayer’s application contained numerous false statements. He now faces up to five years in prison.