The Associated Press reports that on Friday a UBS investor was sentenced to ten months prison time for federal tax evasion after claiming that he was compelled to hide his assets because his parents had lost everything fleeing the Nazi’s during the Holocaust.
Taxpayer Jack Barouh says he had a psychological compulsion to hide his assets in a UBS account and not report the income earned on them to the IRS:
“I have lived under the weight of the Holocaust,” Barouh told the judge. “Those fears are finally starting to subside.”
The federal sentencing Judge said poppycock:
U.S. District Judge Adalberto Jordan imposed the longest sentence to date against a UBS client even after giving [Barough] credit for cooperating in the ongoing investigation and belatedly attempting to come clean with the Internal Revenue Service.
Mr. Barough’s compulsion to hide his assets does nothing to explain away or even mitigate his failure to report the earnings on those assets. He could have succumbed to his compulsion to keep the location of his assets hidden from U.S. authorities while properly declaring on his tax returns the income generated by them. The failure to disclose the foreign accounts would have exposed Mr. Barough to significant penalties, but the reporting of the income would have insulated him from a charge of tax evasion.
Related Posts:
- IRS Commissioner Talks about Offshore Tax Enforcement
- Offshore Tax Fraud: IRS Creates New Division
- Foreign Bank Accounts: Who Must File Treasury Departent Form 90-22.1?
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