IRS (Internal Revenue Service) has achieved a great victory over the former Mobil senior executive Bryan Williams. He was alleged in a case of offshore tax evasion. He concealed foreign bank accounts of him holding millions from IRS.
Between 1993 and 2000 this former executive opened two Swiss offshore in order to hush up his financial activities. He was also accused of purposely failing to fill out documents like foreign bank and financial account forms aka FBAR.
In recent years IRS has become more stringent about the regulations. Different cases like this have prompted them to take such an action. The authority has been petitioning for the more financial resource so that they can expand the tax evasion programs effectively. Their focus is now to catch and prosecute lawbreakers.
Initially, the judgment was in favor of Williams. But in the year of 2003, Williams was convicted in a separate case. His case involved fraud and conspiracy. He pleaded guilty for this case. This year finally the fourth circuit court of appeals in Richmond, Virginia ruled in favor of the IRS (Internal Revenue Service). According to the court documents, he has committed fraud.
Now IRS will impose heavy penalties on Williams for committing such a crime. He will have to pay a huge amount for each year of evasion.
This is a great lesson for taxpayers. This is the high time everyone should be concerned about the consequences of such fraud. So it’s better to avoid the ways to take the help of abusive tax shelter. Going with a legal tax shelter is a quite beneficial way to reduce the taxable amount. A charitable donation is a perfect way of legal tax shelter. Apart from this, you can go for investments. Investments in real estate or health insurance are also considered as a better way of tax shelter.
If you are holding an illegal foreign account, then you should stop such financial activity. Any day and any time IRS authority can accuse of doing such frauds. And the rest you know.