Tax Law

Ex-Juror in Tax Fraud Trial Is Arrested After Failing to Show Up for Hearing into Hidden Legal Past

A suspended lawyer who served on a Manhattan jury that convicted four tax-shelter fraud defendants was ordered arrested when she failed to show up today for a hearing into her alleged failure to disclose information during voir dire. One of the convicted defendants is lawyer Paul Daugerdas, who once headed…

Feb 15, 2012 7:42 PM CST

Suspended Lawyer Who Wrote ‘Bulletproof Asset Protection’ Pleads Guilty in Tax Case, Must Pay $40M

A suspended Colorado lawyer who authored the book Bulletproof Asset Protection pleaded guilty in federal court in Las Vegas on Monday to multiple tax-related charges. William S. Reed, 61, of Santa Barbara, Calif., was indicted in July, along with two other defendants, on accusations he participated in a business scheme…

Feb 15, 2012 6:01 PM CST

Obama Calls for Quicker Judicial Nominee Votes, Mortgage Crisis Unit; Four Justices Skip Speech

Justice Samuel A. Alito Jr. stayed away from the State of the Union speech for the second year in a row after his well-publicized reaction to the 2010 speech. Alito was one of four justices who did not attend on Tuesday evening, according to The BLT: The Blog of Legal…

Jan 25, 2012 12:59 PM CST

Disbarred NY Lawyer, 82, Gets 45 Days for Hiding $26M in Swiss Bank

A disbarred New York lawyer was sentenced today to only 45 days for tax evasion by a federal judge in Manhattan, apparently because of his advanced age and failing health. Kenneth Heller, 82, had faced a maximum 15 years in prison, and sentencing guidelines called for 30 to 37 months.…

Jan 20, 2012 7:09 PM CST

Ex-Prez of Ohio State Bar Inflated Law Firm Biz Expenses, Gets 1 Year in Federal Tax Case

A former president of the Ohio State Bar Association has been sentenced to a year and a day in federal prison after pleading guilty to falsifying federal tax returns. Under the sentence he received from a federal judge in Youngstown, Leslie W. “Les” Jacobs, 67, must also serve just under…

Jan 18, 2012 9:02 PM CST

Former BigLaw Partner Gets 2 Years in ‘Greek Tragedy’ Tax Evasion Case

John J. O’Brien told a federal judge in Manhattan today that he never expected to get away with failing to pay $2.5 million in tax on $10.8 million in income he earned as a partner at Sullivan & Cromwell. “I never believed for one minute that I was going to…

Jan 11, 2012 7:23 PM CST

New IRS Program Allows Those with Secret Offshore Accounts to Avoid Prosecution

A new Internal Revenue Service program announced today allows individuals who evaded income tax by keeping assets in secret offshore bank accounts to avoid prosecution and pay reduced penalties by voluntarily disclosing their wrongdoing. They will also be required to identify bankers and other advisers who helped them, Bloomberg notes.…

Jan 9, 2012 9:55 PM CST

Bankers Charged at Oldest Swiss Bank With Hiding $1.2 Billion From U.S. Government

U.S. prosecutors charged employees at Switzerland’s oldest bank this week of scheming with wealthy U.S. taxpayers to hide more than $1.2 billion. Wegelin & Company confirmed the indictment of three of its bankers Wednesday, a day after the United States attorney for the Southern District of New York announced charges…

Jan 4, 2012 6:22 PM CST

Hundreds of Prisoners Registered as Income Tax Preparers, Audit Finds

The Internal Revenue Service is planning to suspend tax identification numbers issued to hundreds of inmates. An audit found 331 inmates got active or provisional tax preparer identification numbers between September 2010 and July 2011, the Gannett News Service reports. They included 43 inmates serving life sentences, none of whom…

Jan 3, 2012 3:55 PM CST

Amazon Warriors: Local Businesses, States and the Senate Take Aim at Online Retailers

Rozman Bros., a long-standing family-owned appliance and furniture retailer, is often treated like a wallflower at the big dance. Price-conscious shoppers come in to check out merchandise in the 55,000-square-foot showroom of the Harrisburg, Pa., store, putting sales associates through the paces as they kick the tires on flat-screen TVs…

Jan 1, 2012 9:30 AM CST

Lawyer Who Stashed $1M in Safes Is Sentenced; He Tells of ‘Abyss of Ruination’

A Baltimore criminal defense lawyer has been sentenced to a year in prison after a search turned up $1.15 million in his home and office safes. Stanley Needleman, 69, had faced a possible sentence of up to 15 years in prison, report the Baltimore Sun and the Baltimore City Paper.…

Dec 16, 2011 12:31 PM CST

With Charity to All—Except for Scammers: Tougher Laws Seek to Nail Bogus Nonprofits

For a boiler room operation, the U.S. Navy Veterans Association was particularly successful. Since launching in 2002, the group raised an estimated $100 million from donors throughout the country. Its leader, supposedly a retired lieutenant commander going by the name Bobby Thompson, made contributions to the campaigns of several Republican…

Dec 1, 2011 9:50 AM CST

Tax Target: Yes, the IRS Wants You, So Get Organized and Be Nice

To some attorneys an audit by the IRS means a paycheck; for others, pulse- racing fear. “Attorneys have been shown to be an occupation, among others, where the IRS has had success in assessing unreported income and collecting the applicable taxes, penalties and interest,” says Eva Rosenberg, an enrolled agent…

Dec 1, 2011 8:20 AM CST

USC Law School Drops Launch of Tax LL.M. Program Because of Poor Job Prospects for Grads

The University of Southern California’s Gould School of Law has decided it’s not a good time to launch a new LL.M. tax program. Dean Robert Rasmussen put the program on hold because of poor job prospects for graduates with advanced tax degrees, report TaxProf Blog and the National Law Journal.…

Nov 21, 2011 11:30 AM CST

Joe Paterno’s Wife Bought Their Home for $1; Was It Estate Planning or Asset Shielding?

Updated: Pennsylvania court documents indicate that former Penn State football coach Joe Paterno transferred the family home to his wife, Sue, in July for the low price of $1. Sue Paterno also agreed to pay with “love and affection” when she became trustee of the home they once owned together,…

Nov 16, 2011 2:09 PM CST