Years after the crackdown on the marketing of what the IRS terms “fraudulent tax shelters” began, tax professionals are still taking a hit for their roles in the scandals. This, despite a disappointing prosecution in the KPMG case. The US Attorneys Offices are still pursuing claims against other big name firms – the latest? Arnold & Porter.
A former Arnold & Porter tax partner, Peter Cinquegrani, has pleaded guilty to charges that he marketed fraudulent tax shelters. The charges included conspiracy to commit tax fraud, aiding and abetting tax evasion, and aiding in the submission of false and fraudulent documents to the Internal Revenue Service. Cinquegrani allegedly prepared draft opinions on the legality of fraudulent tax shelters for high net worth Ernst & Young clients, even though the shelters were not legal.
Cinquegrani will be sentenced in December. He could be sentenced to up to eight years in federal prison for his role in the scandal.
His former firm, Arnold & Porter, didn’t get off easy either. They have agreed to pay the IRS an undisclosed amount as a penalty for promoting the tax shelters. Their biggest penalty, however, is the stain associated with the firm as a result.
Kelly, I need to talk to you about next week. I’ve emailed you, please reply. Thanks-
Kelly,
I’ve run across your site for the first time tonight and I must say you are an inspiration to other wannabe taxgirls. Anyway, I have a question for you. I’ve set up shop in Singapore as a Tax Professional (I am an attorney (Tulane ’98. Former Navy JAG…married to Navy Officer…with 3 kids under 5…living in Asia for 5 years now). I’m careful not to say tax attorney as I don’t have my LLM…yet and I’m not allowed to practice here). Long story short…I’m wondering if I could add your link onto my website. Also, wondering if you accept internationally based American clients (I need someone to refer folks to when they really need a Tax Attorney…there isn’t one in Singapore (yet). Also, would love to be able to ask you questions from time to time. Seems I can do that on your blog and I always do my own backup research so I understand the bit about it not being binding advice. Also, wondering if you could recommend how I can find some quick-minded freelancer who can help me with tax prep overflow (accounting type I guess). Majority of my clients are trying to hit the June 15 deadline so would compliment someone else practice. Would love to chat more with you over email about this and more.