Illinois Doctor Indicted For Tax Evasion by Hiding Assets in India

Illinois Doctor Indicted For Tax Evasion by Hiding Assets in India

Illinois Doctor Indicted For Tax Evasion Involving India Banks

When hard-working US Taxpayers become successful, it is not uncommon that the last thing they want to do is pay tax to the IRS. This is especially true of professionals such as physicians, who have spent many years grinding it out in school, more school, and residency. In this case, the Defendant had ties to India and used his two children and foreign banks in India to move assets into his children’s’ names – but not pay tax on foreign income he was receiving. The US Government alleges that Defendant knowingly failed to report income on tax returns he files for his children. Since this was a proactive filing and an “affirmative act” (vs not filing at all) – it can be prosecuted for tax evasion, which is a felony. Other issues Defendant may have are due to the reporting requirements for FBAR and FATCA, which he may not have complied with.

As provided by the DOJ:

Illinois Doctor Indicted for Tax Crimes

      • A federal grand jury in Chicago returned an indictment today charging an Illinois doctor with tax evasion, filing false tax returns and assisting in the preparation and filing of false tax returns for his children.

      • According to the indictment, from 2011 through 2017 Krishnaswami Sriram, of Lake Forest, Illinois, attempted to evade payment of approximately $1.6 million in taxes, penalties and interest he owed to the IRS. Among other evasive acts, Sriram allegedly caused his children to be the nominal owners of two rental properties he owned and operated, while still continuing to receive income from those properties. He also allegedly transferred more than $600,000 from his U.S. bank accounts into bank accounts in India that he controlled.

      • Sriram allegedly filed false individual income tax returns that did not report his income from the rental properties and did not disclose his ownership interest in the foreign accounts. He also allegedly filed tax returns for his children that falsely reported the income and expenses related to the rental properties. As part of an attempted offer in compromise, Sriram allegedly knowingly submitted false documents to the IRS that omitted some of his assets, including an investment account in the United States, investment and bank accounts in India and multiple rental properties.

      • If convicted, Sriram faces up to five years in prison for tax evasion, and up to three years for each count of filing a false tax return and aiding in the filing of a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

      • Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. He thanked the U.S. Attorney’s Office for the Northern District of Illinois and the Chicago Healthcare Fraud Strike Force of the Justice Department’s Criminal Division for their substantial assistance in this matter.

      • IRS-Criminal Investigation, the FBI and the Department of Health and Human Services are investigating the case.

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