Archives week 31 of 2016

In a bankruptcy fraud case the government sought to introduce evidence of a prior conviction for willful failure to pay child support. The Defendant objected. The Government argued that it was a specific intent crime equivalent to willful failure to pay tax under section 7203. The Court disagreed.

Defendant appealed a 4 level enhancement for being an organizer and a 2 level enhancement for obstruction during the civil audit. The Court upheld the sentence enhancements. One member of the Court of Appeals dissented.

Taxpayer was charged with tax evasion pursuant to 7201. The Court found that the statute of limitations began to run when the last element of the offense took place. The motion to dismiss was granted.

Frank Gangi resided in the U.S. Virgin Islands. The IRS issued summons to investigate whether Gangi was required to pay income taxes. Taxpayer moved to quash the summons. The motion was denied.

Defendants were charged with tax violations based upon evidence seized during the execution of a search warrant issued for drugs.

The United States sought to recover over $3 million of funds that were transferred at a time in which the taxpayer company owed taxes.

Children of taxpayers objected to partial summary judgment sought by the IRS relating to property transferred from the taxpayers to their children at a time when the taxpayers owed taxes.

Taxpayer was represented by counsel at the jury charge conference. The Court found that Defendant did not need to be present.

Tax return preparer was convicted of willfully preparing false tax returns in violation of 7206. Clients not charged in the indictment were permitted to testify pursuant to rule 404(b) to establish intent.

Taxpayer plead guilty to 371 conspiracy charge that the Government asserted involved approximately $2,000,000. However, the Court ordered restitution of $6,457,500 and overruled defendant's objection.