I wasn’t kidding when I suggested that Richard Hatch would probably be shopping around a new reality TV show deal now that he’s out of prison. I just didn’t think it would happen so fast.

NPR is reporting that the former Survivor winner has hopes of showcasing his relationship with the children conceived from his sperm donations as part of a new TV show.

Pause. Yes. There are just so many jokes. And my mom could be reading. So moving on to the tax part…

Hatch was convicted of charges related to tax evasion and tax fraud in 2006. He was sentenced to 51 months in federal prison and served just over three years before his release in 2009. Hatch was to spend additional time on supervised release but failed to comply with the judge’s orders to file and pay his tax obligations and went back to jail in 2011.

Now out (again), Hatch still claims that he’s innocent, saying that he has been, “subjected to something that can only be described as institutionalized bullying.” He also says that any taxes which might be due should be paid to the government in Malaysia since that was where the series was filmed. Hatch and his tax advisors apparently don’t grasp the whole “worldwide income” piece of the U.S. tax system. Even though the game was played in Malaysia, the winnings were paid to a U.S. person (Hatch) by a U.S. company (CBS) in the U.S. for a U.S. TV show (Survivor). And even if Malaysia felt that they deserved a bite of the apple, that might result in a foreign tax credit if Hatch actually paid those taxes (he hasn’t) but it doesn’t exempt him from reporting and paying tax in the U.S. But it’s not even a serious argument, is it? That certainly wasn’t his position in 2000… or 2001… or 2006. But it makes for interesting press now, I guess.

Hatch also claims that CBS is responsible for paying his taxes. Hatch claimed, as part of his appeal, that he confronted Survivor producers about alleged cheating on the show and they promised to pay his taxes if he kept quiet. CBS, of course, says that didn’t happen.

The “it’s Malaysia’s money” and “CBS should pay my taxes” arguments still don’t explain why Hatch didn’t report over $300,000 in earnings as co-host of a Boston radio show and almost $30,000 from rental properties. I’m guessing there’s a fun explanation for those omissions, too.

Despite Hatch’s views on the matter, his supervised release remains in effect and he must still pay the IRS for his tax obligations which, together with interest and penalty, now stands at $1.7 million. I’m guessing Hatch figures a new show is his ticket to paying those bills.

If that sperm donor show doesn’t work out, Hatch will likely try his hand at another show. He has two stints on Survivor and one on Celebrity Apprentice under his, uh, belt (yes, that’s a not so veiled reference to his fondness for nudity). He told the press that he wants to compete on The Amazing Race.

My vote for The Amazing Race dream team? Richard Hatch and Kate Gosselin. C’mon Phil Keoghan, make it happen.

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Want more taxgirl goodness? Sign up to receive posts by email, follow me on twitter (@taxgirl) or hang out with me on Facebook.Similar Posts:

• “Survivor” Gets Out of Jail
• Richard Hatch Will Survive… In Jail.
• Not a “Survivor” After All: Richard Hatch Still Wants Out of Prison
• Richard Hatch Wants to Leave the Country
• Richard Hatch is a Survivor: “Fat Naked Guy” Takes on the Supreme Court

As much as I’ve blogged about reality TV star (and I use the term “star” lightly) Richard Hatch over the years, I feel I owe it to you to report that our favorite tax evader was released (again) from prison today.

Hatch’s most recent stint was the result of failing to file and pay the taxes for his $1 million winnings from CBS’ Survivor. He served three years in federal prison for not paying the tax on those winnings initially, a sentence which was upheld despite a number of appeals, including one to the Supreme Court. Hatch was released from jail in 2009 but found himself in trouble again this year when he refused to follow the judge’s orders.

Hatch has claimed that he no longer has any money remaining. You and I both know what that means: more reality TV.

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Want more taxgirl goodness? Sign up to receive posts by email, follow me on twitter (@taxgirl) or hang out with me on Facebook.Similar Posts:

• Get Me Out of Here, I’m a “Celebrity Apprentice”
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• Richard Hatch Will Survive… In Jail.

Rapper Beanie Sigel, whose real name is Dwight Grant, may be facing more time in prison – this time for tax troubles.

The Philadelphia rapper pleaded guilty this week to failing to file federal income tax returns for 2003, 2004 and 2005. The IRS believes that Sigel failed to pay nearly $350,000 in federal income taxes over that time period on more than $1 million in income, though Sigel’s attorney, Fortunato Perri, Jr., has reportedly denied that the amount is accurate.

Sigel rose to fame in 1999 with his hit, The Truth, which reached #5 on Billboard records. The Truth was recorded with the fledging label Roc-A-Fella Records which had been founded a few years earlier by Shawn “Jay-Z” Carter, Damon “Dame” Dash, and Kareem “Biggs” Burke for the purpose of releasing a Jay-Z album. Jay-Z turned to Beanie Sigel and Philly rapper Freeway, among other artists, for collaboration and with that, it appeared that Sigel might be well on his way to super stardom.

In 2001, Sigel released his album, The Reason, which picked up an award at the BET Awards for Album of the Year. The following year, Sigel founded the rap group, State Property, with Philly rappers Freeway, Peedi Peedi, Oschino, Eric Pletcher and Omillio Sparks, and the Young Gunz (Young Chris and Neef Buck) and female R&B singer Casha. The founding of the new group lead to a number of new business opportunities including film appearances and the launch of an urban wear clothing line.  It is alleged, during this time, that the Sigel was not filing federal income tax returns or paying federal income taxes, though Sigel’s tax charges do not include these years.

In 2004, Sigel was sentenced to a year long stint in prison after pleading guilty to gun and drug charges in Philadelphia. Prosecutors had recommended a longer sentence but U.S. District Judge R. Barclay Surrick gave Sigel credit for good behavior, noting that Sigel had made efforts to turn his life around since the arrest. Apparently, that didn’t include filing tax returns.

Over the next few years, Sigel worked on a new album and shot a number of videos. The timing also coincided with the departure of Jay-Z from Roc-A-Fella Records to become president of Def Jam Records. Jay-Z’s departure lead to a number of feuds, including infighting within Sigel’s own group. Nonetheless, Sigel eventually signed again with Roc-A-Fella for his fourth album, The Solution.

The years leading up to Sigel’s departure from Roc-A-Fella were volatile, including another jail term for Sigel. After beating an attempted murder charge (for which he was tried twice), Sigel was eventually sentenced to jail and time in a halfway house for violating the terms of his probation. After his third violation, Sigel was sent back to prison for three months.

Despite his legal troubles, Sigel remained popular in the hip hop world. He also gained admiration in his hometown of Philadelphia when he contributed to a reward fund for information about missing Philadelphia woman Latoyia Figueroa. Figueroa’s body was eventually found due to a tip which lead police to her boyfriend, who later admitted killing her. Sigel, who posted the reward while in jail, said:

I was booked when I heard the story about the girl missing. Wasn’t nobody really doing nothing. They had a reward for $10,000 but ain’t nobody really going to try to do anything for that. I wanted to start something. I was like, ‘Damn, I’m in jail.’ I wanted to do anything I could. All I had was a radio. I felt like if I’m in jail and I could make a move to find this girl, everybody else could do what they could do too. I wanted to just motivate people to try and find the girl.

Sigel clearly had some money while he was locked up. The IRS alleges that while Sigel was making money – and spending time in prison – he was failing to report his income. Sigel apparently agreed, considering the guilty pleas. He faces a November 18 sentencing where he could receive up to three additional years in federal prison.

Sigel counts rapper Lil Wayne, who has faced tax troubles of his own, as one of his favorites on the scene these days, though Sigel isn’t making his own music right now. Nonetheless, he says:

I consider myself relevant in the rap game at all times, After you party and do all that, now the real world kicks in. The pain, the stress, agony. The lessons you learn. Your come ups, your downfalls. The real world–which I deal with in my music–is always relevant. All the shit I might go through in the course of a day is on my album. I’m talking about religion, spiritually, getting a piece of mind. All that counts and all that’s in my music.

We’ll see if he sings a different tune in a few years.

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Rapper and actor Ja Rule, whose real name is Jeffrey Atkins, was sentenced this week to more than two years in federal prison for failing to file income tax returns between 2004 and 2006. He had faced up to three years in prison for the charges.

The sentencing follows a plea agreement into the rapper’s finances from 2004 to 2008. As part of the plea, the government dropped counts against Ja Rule for failing to pay taxes in 2007 and 2008.

Ja Rule is already serving a two-year sentence in a federal prison on a gun charge stemming from his 2007 arrest in New York City. At the time of the arrest, Ja Rule was found with drugs and a gun; fellow rapper Lil Wayne was arrested after the same show that evening. Ja Rule pleaded guilty to the weapons charges and asked to have the tax evasion sentence served concurrently with the weapons sentence. He was granted a delay at the start of his original sentence so that he could finish his new album.

While some may have grumbled at the appearance of favorable treatment with the delay, there is a rationale behind it. Ja Rule has been ordered to pay back $1.1 million in unpaid taxes plus penalty and interest; without a source of income, the government doesn’t stand much of a chance in getting its money back.

The rapper once boasted quite the successful career, promoting not only his own albums, but appearing on other artist’s albums as well. In 2002, Ja Rule collaborated on albums with Fat Joe, Mary J. Blige, Bobby Brown and Ashanti. That time period also marked a host of problems for the rapper, including public disputes with fellow rappers DMX, Eminem and 50 Cent.

A couple of years later, in 2004, the rapper was arrested for driving with a suspended license and possession of marijuana. The 2004 arrest didn’t seem to phase Ja Rule at all. His November 2004 release – just a few months after the arrest – of his studio album R.U.L.E. debuted at No. 7, selling 166,000 copies in its first week of release. The album’s lead single, “Wonderful” featuring R. Kelly and Ashanti, peaked at No. 5 on the Billboard Top 100 Singles chart.

This latest prison stint may not have the same outcome. While some rappers, like Snoop Dogg, tend to come out of prison with even more of a following, that hasn’t happened for Ja Rule to date. Let’s face it: “Tax Evasion Was the Case” just doesn’t have the same ring to it.Similar Posts:

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The bizarre saga involving former Hollywood tax attorney Matthew G. Krane appears to finally have come to a close.

Krane was sentenced yesterday to 2-1/2 years in federal prison for his role in a tax shelter scheme. Krane had pleaded guilty in 2009 to evading tax by failing to claim $36 million in undeclared income and attempting to obtain a false passport to flee the country after his participation in the scheme was discovered; at the time of his arrest, law enforcement officials found the fake passport, along with crystal meth, date-rape drugs and horse tranquilizers. Krane also agreed to pay $23 million in back taxes as part of his sentence.

The relatively meager sentence reflected Krane’s cooperation in a lengthy federal investigation into the scheme. Krane testified against Jeffrey Greenstein and former tax attorney Charles Wilk, who were the alleged masterminds behind a tax shelter referred to as the Portfolio Optimized Investment Transaction or POINT. Six investors, including Robert Wood Johnson IV (heir to the Johnson & Johnson fortune and owner of the New York Jets) and Haim Saban, contributed more than $1.5 billion to the tax shelter, which generated false losses.

Part of Krane’s sentence also requires him to refund nearly $18 million in fees to Saban, who was not aware of the criminal nature of the scheme. Saban’s family has indicated that they will donate the returned money to charity. They don’t appear to need it; Saban has consistently been ranked by Forbes magazine as one of the richest people in America for the past few years. Much of Saban’s wealth is a result of his promotion of the annoyingly popular Power Rangers (trust me, you’ve seen at least one kid dressed as a Power Ranger every single Halloween). Saban is also considered one of the Democratic Party’s biggest individual donors though he supported Bush’s re-election in 2004 on national security issues.

Krane’s testimony against Greenstein and Wilk helped prosecutors obtain a guilty plea. Greenstein is the co-founder and former chief executive of the Quellos Group LLC. Quellos was considered one of the world’s largest managers of mutual funds made up of hedge funds: the funds portion of the company was sold to BlackRock in 2007 for $1.7 billion (BlackRock was not part of the investigation). Greenstein and Wilk had initially argued that the scheme was reviewed and blessed by outside firms, including, reportedly, mega-firms Cravath and Bryan Cave but eventually took responsibility.

Under the plea, Greenstein and Wilk agreed to charges of conspiracy to defraud the government and aiding in the filing of a false tax return. They must pay $7 million in penalties plus the cost of their prosecution. They were also required to deliver speeches at their graduate schools about ethics which is kind of weird considering that Greenstein clearly didn’t learn much from the ethics courses that he attended as an attorney. Nonetheless, Greenstein delivered his speech to the University of Washington. Wilk planned to speak at his alma mater, NYU, but the school turned him down and that part of his sentence was eventually dropped. Each of the men were also sentenced to four years in prison.

Now, with Krane’s sentence, the saga involving more than $1.5 billion in tax shelter investments has finally ended – until Hollywood gets ahold of it, course.

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When Wesley Snipes was found guilty on tax evasion charges, he vowed to appeal. And appeal he did. Over and over. That, however, may finally be coming to an end.

This morning, Snipes’ petition for certiorari was denied by the Supreme Court. You might have heard this referred to as “denied cert” or “cert denied” by lawyers trying to sound cool or, as in my case, those of us in the legal profession who can’t pronounce or spell Latin.

Here’s what it means: the Supreme Court has what is called “original jurisdiction” over certain kinds of cases. Those cases, which are defined by statute (28 U.S.C. § 1251) go straight to the Supreme Court. The typical case associated with original jurisdiction would be a dispute between the states.

Most cases, including the Snipes matter, don’t have original jurisdiction. To be heard at the Supreme Court level without having original jurisdiction, the losing party must file a petition seeking a review of the case. If the Supreme Court grants the petition and decides to hear the matter, it’s called a writ of certiorari. If the Supreme Court turns the petition down, it’s referred to as certiorari denied. A denial does not necessarily mean that the Supreme Court agrees with the  findings of the appellate court; it simply means that appellate decision will stand.

And that’s what happened in this case. Snipes, who is serving a three-year sentence at the Federal Correctional Institution McKean in Lewis Run, Pennsylvania, filed a 49 page petition (downloads as a pdf) raising two issues:

1. Is an accused person deprived of the right under Article III and the Sixth Amendment to be tried only by a jury of the community where venue is proper, when factual questions determinative of whether venue has been correctly laid are determined solely by a jury selected in the place challenged by the defendant as incorrect?
2. Where venue is a contested factual issue in a criminal trial, does the government bear a burden of proof beyond a reasonable doubt or only by a preponderance of the evidence?

Neither issue was addressed by the Supreme Court which declined to hear the matter without further comment. Likewise, Snipes did not comment. With that, Snipes will likely now serve the remainder of his sentence.

Snipes was convicted of failing to file federal income tax returns three years ago despite earning an estimated $40 million during the years in question. He was acquitted on more serious charges of tax fraud and conspiracy, despite admitting that he knew that not paying his taxes “sounded too good to be true.”

Snipes was slated to begin his sentence in June 2008 but did not, however, report to prison until November 2010 due to a number of appeals. Originally, Snipes lost an appeal filed based on the length and severity of his sentence. Snipes’ attorneys claimed that the sentence was unreasonable. A federal court disagreed.

Snipes tried again in November 2010, claiming that he did not receive a fair trial. At the center of his appeal was a claim that he could not have gotten a fair trial in Ocala, Florida, which he had previously referred to as a “hotbed of Klan activity.” U.S. District Court Judge William Terrell Hodges denied Snipes a new trial, writing:

The Defendant Snipes had a fair trial; he has had a full, fair, and thorough review of his conviction and sentence by the Court of Appeals; and he has had a full, fair, and thorough review of his present claims, during all of which he has remained at liberty. The time has come for the judgment to be enforced.

Despite that ruling, Snipes tried again. The issues of venue, which were described as “precisely those which led to the colonists’ inclusion of a venue grievance in the Declaration of Independence” were raised again in Snipes’ petition to the Supreme Court.

Whoa. Is it just me or do Snipes’ lawyers sound like they might be moonlighting as screenwriters? This is, after all, the stuff of Hollywood.Similar Posts:

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With just a few weeks to go before Tax Day, it seems that tax scams aren’t slowing down. A Jacksonville, FL, news station has reported the arrest of George Graycochea on a charge of organized fraud.

Graycochea allegedly advertised on Craigslist for tax preparation services. Since I’ve never seen any ads on Craigslist for tax prep, I popped over to check it out. Yep, there’s quite a number of them “as low as $75″ ($50 for “IRS audits”), many without addresses and asking, instead, that you contact them by email. My favorite advised that you might be you “allegeable to get FULL TAX REFUND PLUS EXTRA MONEY.” Despite my eye rolls, apparently these ads are successful in attracting taxpayers.

One such taxpayer was Charles Smith who said he thought the tax preparer he found on the site seemed legitimate. Smith paid him for the return and waited for his tax refund, which Graycochea advised would be $1,000. His $1,000 would never arrive. Instead, Graycochea intercepted the refund – in the form of a TurboTax credit card – and used it for himself.

Protect yourself from similar scams. When choosing a tax preparer, be smart:

• “Too good to be true” usually is. Don’t be sucked in by promises of huge refunds if you’re not sure that you qualify. And ignore preparers who base their fees on the size of your refund (the IRS has found a disproportionate number of fraudulent preparers use this technique).
• Do your homework. Ask around, including more about the tax preparer’s qualifications. It is absolutely okay (and not insulting) to ask about credentials – if your tax preparer doesn’t want to tell you about his or her training, chances are, there’s a reason.
• Be nosey. Check out what other taxpayers (and friends) have to say about the preparer. You may want to Google the preparer and check out their reputation with the Better Business Bureau (keep in mind that one or two disgruntled taxpayers shouldn’t be indicative of a tax pro’s reputation since those who prepare lots of returns are bound to tick off someone but lots of complaints may be indicative of a pattern).
• Know the rules. If you live in a state like California or Oregon that licenses preparers, ask to see the license. Nationwide, remember that for 2011, all paid tax preparers must have a PTIN from the IRS – that’s a tax ID number that lets you know that the tax preparer has registered with the IRS.
• Don’t be afraid to ask questions. If you get skeptical, follow up right away. This is why I prefer tax preparers that are around more than seasonally – if yours shuts down for the year on April 19, consider finding someone more available.

The bottom line is that when it comes to your finances, don’t be cheap and don’t be foolish. Keep your wits about you and don’t be a victim this tax season.

Technorati Tags:
tax, tax preparers, tax professionals, tax scams

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Is it just me or does anyone else secretly wonder whether Donald Trump phoned up the judge in the Richard Hatch matter and tipped him off as to where and what Hatch was doing? I just find the timing odd (and yes, it did cross my mind that the Donald had a conversation with God about Bret Michaels, too). Hatch, who is currently starring on “Celebrity Apprentice” (take both “starring” and “Celebrity” with a grain of salt here), has been ordered back to jail to serve a nine month prison sentence. You just can’t buy that kind of publicity – or maybe you can.

At any rate, it won’t be the first prison sentence for Hatch. He’s made not one but two appearances previously. This time, Hatch turned himself into U.S. marshals in Rhode Island to serve time as a penalty for failing to comply with the judge’s orders. He had been ordered to refile his 2000 and 2001 taxes and pay what he owed but he has not done so.

This, I don’t get. Even if you buy his story about why he didn’t report the $1 million prize for winning “Survivor” (and other income) the first go round, failing to comply with the judge’s orders three years later just doesn’t make sense. At the very least, Hatch could cough up the cash to wander down to his local retail tax prep store and file some back tax returns. And the IRS would, I’m sure, be willing to work with him on payment to avoid prison. Hatch clearly hated prison. Why, then, sign on for another stint?

As for his other gig, the whole reality television thing, the live finale of the “Celebrity Apprentice” will air on NBC on May 22. I guess it’s a safe bet to assume he doesn’t win?

Technorati Tags:
Richard Hatch, Survivor, tax, tax evasion, Celebrity Apprentice

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Oh c’mon. You totally knew that I was going to choose kickbacks, right? The rules governing illegal activity and taxes are some of the most entertaining bits of the Tax Code, not that the bar’s terribly high to begin with…

The specific section of the Code that references kickbacks can be found under Itemized Deductions for Individuals and Corporations, §162, Trade or business expense, (c) Illegal bribes, kickbacks, and other payments. The relevant part states:

(1) Illegal payments to government officials or employees. No deduction shall be allowed under subsection (a) for any payment made, directly or indirectly, to an official or employee of any government, or of any agency or instrumentality of any government, if the payment constitutes an illegal bribe or kickback or, if the payment is to an official or employee of a foreign government, the payment is unlawful under the Foreign Corrupt Practices Act of 1977. The burden of proof in respect of the issue, for the purposes of this paragraph, as to whether a payment constitutes an illegal bribe or kickback (or is unlawful under the Foreign Corrupt Practices Act of 1977) shall be upon the Secretary to the same extent as he bears the burden of proof under section 7454 (concerning the burden of proof when the issue relates to fraud).

(2) Other illegal payments. No deduction shall be allowed under subsection (a) for any payment (other than a payment described in paragraph (1)) made, directly or indirectly, to any person, if the payment constitutes an illegal bribe, illegal kickback, or other illegal payment under any law of the United States, or under any law of a State (but only if such State law is generally enforced), which subjects the payor to a criminal penalty or the loss of license or privilege to engage in a trade or business. For purposes of this paragraph, a kickback includes a payment in consideration of the referral of a client, patient, or customer. The burden of proof in respect of the issue, for purposes of this paragraph, as to whether a payment constitutes an illegal bribe, illegal kickback, or other illegal payment shall be upon the Secretary to the same extent as he bears the burden of proof under section 7454 (concerning the burden of proof when the issue relates to fraud).

(3) Kickbacks, rebates, and bribes under medicare and medicaid. No deduction shall be allowed under subsection (a) for any kickback, rebate, or bribe made by any provider of services, supplier, physician, or other person who furnishes items or services for which payment is or may be made under the Social Security Act, or in whole or in part out of Federal funds under a State plan approved under such Act, if such kickback, rebate, or bribe is made in connection with the furnishing of such items or services or the making or receipt of such payments. For purposes of this paragraph, a kickback includes a payment in consideration of the referral of a client, patient, or customer.

Here’s what it says in a nutshell: Illegal kickbacks are wrong. You can get in a lot of trouble if you engage in illegal kickbacks. But even if you don’t get into trouble, you can’t deduct them on your tax return as a business expense.

And it gets even better. You still, under the Tax Code, have to report the payments if they would otherwise be reportable on a form 1099-MISC. The rules for reporting payments as nonemployee compensation on a form 1099-MISC are simply:

• You made the payment to someone who is not your employee;
• You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
• You made the payment to an individual, partnership, estate, or, in some cases, a corporation; and
• You made payments to the payee of at least $600 during the year.

In other words, kickbacks may be subject to form 1099-MISC requirements.

Yes, as income. No, as deductions.

And here’s my quick clarification: not all kickbacks are illegal. And under the rules, only illegal kickbacks are not deductible. But if you receive a kickback, legal or no, you have to report the income.

Fun, right?

Technorati Tags:
1099, business deductions, tax, 1099-MISC, kickbacks

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Hot off the heels of an IRS announcement about a new amnesty plan for taxpayers with offshore accounts, a federal judge brought down the hammer on a tax evasion case involving those same kind of accounts. Mauricio Cohen and Leon Cohen-Levy (father and son, in case you wondered about the similar names) were sentenced to ten years in prison for tax evasion. The duo were clients of HSBC (which is having its own issues right now).

Cohen and Cohen-Levy were convicted in a federal court of failing to report nearly $50 million of income. The IRS claimed that the pair used a series of shell corporations and offshore accounts to hide more than $150 million in assets.

According to court documents, the Cohens’ crimes included failing to pay taxes on the sale of a New York hotel over 10 years ago which generated proceeds of $33 million. Most of the money was eventually routed through bank accounts belonging to tax haven shell companies based in the Bahamas, Panama and other locations, and the income was never reported on U.S. tax returns by the Cohens or any of their related businesses or entities, prosecutors said in documents presented in the case.

Interestingly, Cohen and Cohen-Levy are not U.S. citizens. That’s worth a mention since there is a distinction between U.S. citizens and U.S. taxpayers. You need not be a U.S. citizen to be a U.S. taxpayer.

The IRS maintained that Cohen and Cohen-Levy were U.S. taxpayers and the owners of a NY hotel (under the Flatotel brand) that was sold for $33 million. That income was not reported to the IRS and was, instead, funneled to a Swiss account at HSBC, along with other income.

The IRS also accused the pair of hiding other assets to avoid tax, including two homes, a yacht and several cars. Among the cars were said to be a Rolls-Royce Phantom (which, according to the Rolls-Royce website is “built to order”), a Porsche Carrera GT (a sports car that can reach a zippy 100 MPH in just 7 seconds) and a Ferrari Testarossa (featured on “Miami Vice”). Despite such luxuries, the two reportedly told IRS that they owned less than $15,000 in assets.

After the sentencing, the IRS continued to fire warning shots, saying:

The IRS is vigorously pursuing unreported income in hidden offshore accounts. We urge citizens to consider whether tax fraud is worth the price of going to jail.

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