Another Plea Agreement for failing to declare an Offshore Account

If you have not already done so, please read this primer on FBARs before continuing – 

http://www.derrenjoseph.com/2014/11/fbars-and-form-8938.html



So often, we are asked whether the authorities come after taxpayers who failed to disclose 6 figure accounts?  

Or whether the focus is only on taxpayers who fail to disclose 7 figures and above.  



Here’s an example of a taxpayer failing to disclose a mid 6 figure account and facing the wrath of the US Government.

USAO CD CA announced here the plea (penalty of $100,000 (par. 5(g))) by a plastic surgeon to one FBAR criminal count.  The relevant excerpts from the announcement are:

          According to the plea agreement filed in this case, while working as a plastic surgeon in Beverly Hills, Mani began to travel to Dubai in 2011 to perform plastic surgery for a foreign medical center. Mani’s accountant, who was aware that Mani was earning foreign income, informed him that he would be required to report any foreign bank accounts under his ownership or control to the IRS. 

          In 2012, Mani opened a bank account with a financial institution based in Dubai and began depositing income he earned from abroad into this account. By February 2013, Mani’s foreign bank account held more than $400,000. However, Mani willfully failed to file a FBAR to disclose his foreign bank account for the calendar years 2012 and 2013. 

          In addition to failing to disclose his interest in his foreign bank account, Mani also failed to report on his federal income tax returns the vast majority of the approximately $1.28 million in foreign income he earned in Dubai for the years 2012, 2013 and 2014.

The plea agreement is here.



http://federaltaxcrimes.blogspot.sg/2017/07/another-plea-agreement-for-offshore.html

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