Tax Crimes

Former Baltimore Mayor Pugh faces Multiple Charges over Bookgate Scandal

On behalf of Frost Law posted in on May 28, 2020.

Update: As of November 21, 2019, various news sources are reporting that Former Mayor Pugh has pleaded guilty to four of the 11 charges in an executed plea deal. According to these reports, she pleaded guilty to at least one charge of tax evasion. Earlier this year, we reported the first public display of federal […]

Tags: Blog, IRS, Tax Crimes, Tax Evasion


Celebrities’ Initial Coin Offering Endorsements Under SEC Scrutiny

On behalf of Frost Law posted in on April 23, 2020.

Mary Lundstedt, Esq. Cryptocurrency start-up firms sometimes attempt to raise funding for an original cryptocurrency venture through Initial Coin Offerings (ICOs). Typically, the firm presents a whitepaper plan detailing the: (1) project requiring funding, (2) amount of funding needed, (3) amount of cryptocurrency that investors will retain, (4) specific currency accepted, and (5) timeline for […]

Tags: Articles, Tax Crimes


Baltimore Police Commissioner De Sousa Charged With Tax Crime

On behalf of Frost Law posted in on April 23, 2020.

Mary Lundstedt, Esq. On May 10, 2018, the United States Attorney for the District of Maryland announced that new Baltimore Police Commissioner Daryl De Sousa has been charged with three misdemeanor counts of willful failure to file a U.S. individual income tax return. Specifically, the charges allege that Commissioner De Sousa failed to file returns […]

Tags: Articles, Tax Crimes


Impact of Bedrosian v. U.S. – A Comprehensive Analysis

On behalf of Frost Law posted in on April 22, 2020.

A recent decision has shaken tax authorities in the US–Bedrosian v. United States, No. 2:15-cv-05853 (E.D. Pa. Sept. 20, 2017). Case History The case was filed by the plaintiff, Arthur Bedrosian, to obtain a refund of the $9,757.89 that he paid to the Internal Revenue Service (IRS). This amount was paid for his alleged willful […]

Tags: Articles, IRS, Tax Crimes


IRS Reminds You to Report Virtual Currency Transactions

On behalf of Frost Law posted in on April 21, 2020.

Mary Lundstedt, Esq. On March 23, 2018, the IRS issued IR-2018-71, reminding taxpayers that they must report income from virtual currency transactions on their income tax returns. The IRS defined virtual currency as “a digital representation of value that functions in the same manner as a country’s traditional currency.” The IRS emphasized that, as with […]

Tags: Articles, IRS, Tax Crimes, Tax Topics


Be Cautious When Choosing a Tax Preparer: Two Maryland Tax Preparers Guilty of Filing False Returns

On behalf of Frost Law posted in on April 20, 2020.

Glen Frost, Managing PartnerMary Lundstedt, Esq., Associate The Comptroller’s Field Enforcement Division and the Criminal Investigations Division of the Maryland Attorney General’s Office, working in tandem, investigated and prosecuted two more Maryland tax preparers—resulting in guilty pleas. On July 24, 2018, Maryland Attorney General Brian E. Frosh and Comptroller Peter Franchot announced that two tax […]

Tags: Articles, Tax Crimes


Government Charges Former CPA with Filing False Streamlined Offshore Submission

On behalf of Frost Law posted in on April 17, 2020.

Eli Noff, Esq.,PartnerMary F. Lundstedt, Esq.,Associate On August 26, 2019 the United States Department of Justice (DOJ) issued a press release reporting that a federal grand jury returned a superseding indictment charging Taxpayer with: (1) failing to file Reports of Foreign Bank and Financial Accounts (FBARs); (2) filing false individual income tax returns with the […]

Tags: Articles, Tax Crimes


The Dispute Over Non-Willful FBAR Violation Calculations

On behalf of Frost Law posted in on April 17, 2020.

Eli Noff, Esq., PartnerMary F. Lundstedt, Esq., Associate Taxpayers must use FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) to report their foreign accounts if the aggregate value of the accounts exceeds $10,000 anytime during the calendar year.[1] Before 2004, non—willful FBAR violators were not subject to a penalty. However, for non—willful […]

Tags: Articles, Tax Controversies, Tax Crimes


“Fatally Inconsistent:” Notice of Deficiency Invalid Due to Ambiguity

On behalf of Frost Law posted in on April 17, 2020.

Eli Noff, Esq., PartnerMary F. Lundstedt, Esq., Associate On October 28, 2019, in U.S. Auto Sales, Inc. v. Commissioner,1 the Tax Court dismissed a case, holding that the Notice of Deficiency (NOD), issued by the Internal Revenue Service (IRS), was ambiguous on its face because it identified two different taxpayers as potentially liable for the […]

Tags: Articles, Tax Crimes


Proposed Tax Levy Sustained to Collect from Non-Compliant Former Harvard Professor

On behalf of Frost Law posted in on April 17, 2020.

Eli Noff, Esq., PartnerMary F. Lundstedt, Esq., Associate On November 19, 2019, in Sullivan v. Commissioner,[1] the Tax Court held that the IRS settlement officer (SO) did not abuse discretion in sustaining levies for Harvard law professor (Taxpayer) who had not filed tax returns from 2005-2013, and who subsequently neglected to provide the IRS with […]

Tags: Articles, Tax Crimes