Arizona Businessmen Receive Lenient Sentences For Stashing Millions in Secret Swiss Accounts

more+
less-

Bloomberg BNA is reporting that two prominent Phoenix businessmen were each sentenced to 10 months in prison for their roles in a scheme to stash more than $8 million in secret offshore Swiss bank accounts and for not reporting income from those accounts to the Internal Revenue Service (United States v. Kerr, D. Ariz., No. 2:11-cr-02385). Stephen Kerr and Michael Quiel were convicted April 12 of two counts of filing false individual income tax returns for 2007 and 2008. Kerr was also convicted of two counts of failing to file a Report of Foreign Bank and Financial Accounts (FBAR).

“This is a surprisingly-low sentence,” said Jim Mastracchio, Co-Chair of BakerHostetler’s Tax Controversy Practice and a member of the firm’s Criminal Tax Defense Practice. Both the government and the U.S. Probation Office calculated the Sentencing Guidelines range as 51-63 months. “With the government asking for a sentence of 60 months and the Probation Office recommending a sentence of 51 months, a sentence of 10 months is very lenient, especially since the conviction included a criminal FBAR violation.” Taxpayers may be able to make a voluntary disclosure with the IRS and avoid any criminal prosecution associated with off-shore bank accounts.

Written by:

Published In:

IRS
Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BakerHostetler | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×