Chiropractor faces ten years in prison for failure to file FBAR

The Internal Revenue Service (IRS) continues its crackdown on the failure to report foreign assets. A recent case provides an example. In this case, the IRS has accused a chiropractor of tax evasion.

The agency’s accusations are based on two charges:

 

  • Tax evasion. The agency stated the man failed to report income in excess of $500,000 annually from 2012 to 2015. 
  • Failure to report foreign assets. The IRS has accused the professional of holding over $1.5 million in assets in accounts in Russia. The government states the chiropractor was aware of the fact he was supposed to file a Foreign Bank Account Report (FBAR) for accounts with an aggregate value at or above $10,000. Instead of filing as the law requires, the IRS has accused the man of intentionally failing to report these assets.

These accusations come with serious potential penalties. The tax evasion charges can come with up to five years imprisonment and a $250,000 fine. The failure to report foreign accounts could result in ten years imprisonment and a $500,000 fine. These fines are in addition to required restitution payments for taxes due during the years in question.

What can taxpayers learn from the chiropractor’s fight with the IRS? This case is an example of the harsh penalties that can come with criminal tax charges. It also serves as a reminder for those who have yet to come into compliance with tax obligations. Options are available that can reduce the risk of penalties. An attorney experienced in compliance options can discuss the benefits and risks for each situation.

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