Gregg Kaminsky, a Georgia-based citizen, is accused of false declarations and goes to prison.
G. Kiminsky opened a UBS bank account in 2000 and kept it secret without filing a Foreign Bank and Financial Accounts form (FBAR) with the Internal Revenue Service (IRS). According to the Wall Street Journal he moved the $400k remaining in his UBS account to a bank in Hong Kong during May and June 2009, after UBS admitted it helped U.S. taxpayers hide money abroad. At the time, he informed UBS that he expected any details regarding the account over its history to be kept entirely confidential’ reports the newspaper. Experts say such actions and instructions make a bad tax problem worse, because they offer evidence a taxpayer meant to break the rules.
‘If you are going to seek forgiveness for intentional wrongdoing on a tax return, it’s in your interest to be fully forthcoming,” says John Horn, acting U.S. attorney for the Northern District of Georgia, whose office prosecuted the case.
G. Kaminsky must pay the IRS $91,983 in restitution plus more than $250k for concealing foreign accounts. On March 4, he was sentenced to four months in prison, followed by two years of supervised release and 200 hours of community service.
He was also required to file another set of amended tax returns.