California Man Gets Six Months for Concealing Foreign Accounts – Los Angeles Income Tax Planning & Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on July 22, 2014

On July 9, Ashvin Desai, a medical device manufacturer from California, was sentenced to six months in prison and a single day of home confinement after failing to report more than $8 million in foreign bank accounts.

Desai was convicted of the charges in the US District Court for the Northern District of California in 2013 after it was made clear that he had concealed several foreign bank accounts with the Hong Kong and Shanghai Banking Corp. Ltd. in both India and Dubai. The sentencing follows Desai’s indictment by grand jury on three counts of tax evasion, two counts of willfully aiding in the preparation of a materially false tax return, and three counts of failing to file Reports of Foreign Bank and Financial Accounts (FBARs). Prior to his July 7 sentencing, Desai informed the court that the Internal Revenue Service had assessed an FBAR penalty against him for more than $14 million, according to the Justice Department.

Givner & Kaye has several dozen clients with matters pending in the Offshore Voluntary Disclosure Program, including those with criminal implications. If you have an offshore account that has not been reported, call us immediately. Every bank in the world is likely to make a deal with the IRS due to FATCA – the Foreign Account Tax Compliance Act. Hiding is foolish. The IRS will ultimately have information on every account in the world in which there is even a chance that a U.S. person is involved. The fact that you may have used a passport of another country is unlikely to be enough to escape scrutiny. If the IRS starts a file on you before you come into the system, the penalty increases from what might be only 5% or 27.5% to 50% plus possible jail time.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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