Beverly Hills FBAR Conviction & Prison Sentence (Dubai Account $1M+)
As OVDP is close to ending (9.28.2018), the U.S. Government is turning up the heat on FBAR violations, and is pushing more and more for criminal prosecution.
In recent months, the DOJ has been aggressively pushing for willful penalties and criminal convictions against any individuals caught trying to hide money offshore.
It Does Not Need to be Manafort Sized
There is a common misconception that people have to have a grand plan of offshore tax evasion, money laundering, foreign offshore shell companies, or be a “Whale” in order to get caught by the IRS.
But that is simply not true.
Some attorneys will tell you a “Quiet Disclosure” is harmless, or anyone can go Streamlined, since the IRS never criminally prosecutes people for FBAR violations.
FBAR Criminal Conviction for Offshore Account in Dubai
As provided by the Department of Justice’s website:
“Beverly Hills Plastic Surgeon Sentenced to Year in Federal Prison for Concealing Offshore Bank Account from Federal Officials.
LOS ANGELES – A Beverly Hills plastic surgeon was sentenced today to one year and one day in federal prison for failing to disclose to federal authorities a foreign bank account in which he deposited some of the nearly $1.3 million he earned while working in Dubai.
Mani pleaded guilty In July 2017 to one count of failing to file a foreign bank and financial account report (FBAR) for the 2013 tax year. When he pleaded guilty, Mani admitted failing to file FBARs with the Treasury Department for both the 2012 and 2013 tax years.
He also admitted that he 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.
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 to U.S. authorities any foreign bank accounts under his control.
In 2012, Mani opened an account with a Dubai-based bank and began depositing income he earned from abroad into this account. He liquidated the account in 2013, when it held more than $400,000 in foreign currency.
United States citizens who have an interest in or authority over a financial account in a foreign country with assets over $10,000 are required to disclose and report the foreign financial account to the United States Department of Treasury for each year the financial account exists.”
Offshore Tax Evasion and IRS Voluntary Disclosure
If you believe you may have acted willfully or with reckless disregard in failing to report or disclose income, you may qualify for one of the approved IRS Voluntary Disclosure Programs (as long as the income was from legal sources).
Golding & Golding, A PLC
We have successfully represented clients in more than 1000 streamlined and voluntary disclosure submissions nationwide, and in over 70-different countries.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.