Last week a Boston venture capitalist and director at a Boston bank was charged with…
Another U.S. taxpayer with an offshore HSBC bank account pleads guilty
On April 13, 2011, another U.S. taxpayer with an offshore HSBC bank account, Josephine Bhasin (United States v. Bhasin, E.D.N.Y., No. 11-cr-00268-ADS), pled guilty to charges of knowingly filing false tax returns, false amended tax returns, and false FBARs.
According to court documents, Ms. Bhasin of Huntington, NY, filed a false individual income tax return for 2008 that failed to include a Schedule B reporting her interest in or signature authority over foreign financial accounts at HSBC India. In 2008, Bhasin’s bank accounts at HSBC India were valued at approximately $8.3 million. The 2008 income tax return was further false because it reported, on Line 8a, interest income of only $1,257.16, whereas during 2008 Bhasin actually earned approximately $169,000 of interest income on certificates of deposit maintained at HSBC India.
In court Bhasin admitted that after being contacted by attorneys for the Justice Department’s Tax Division on July 15, 2010, she filed a false Report of Foreign Bank and Financial Accounts (FBAR) for 2009 and a false amended tax return for 2009 that reported ownership of a foreign bank account in India holding only $49,000. In addition, Bhasin also admitted that in September 2010 she filed similar false FBARs for 2007 and 2008.
At sentencing, Bhasin faces a maximum sentence of three years in prison and a maximum fine of $250,000, or twice the amount of financial gain to the defendant or loss to the Internal Revenue Service (IRS). Additionally, Bhasin has agreed to pay a 50 percent civil penalty based on the year with the highest aggregate account balance between 2004 and 2009 for failing to file FBARs relating to her undeclared bank accounts.
Separately a request to serve a Summons has been granted on behalf of the Internal Revenue Service (IRS) against HSBC. The Summons has been a useful weapon in the government’s arsenal; information gathered is being used to build cases against U.S. taxpayers. It is believed that HSBC will provide thousands of customer names soon.
Our law office, which represents many taxpayers throughout the U.S. and around the world with undisclosed offshore accounts, believes that the recent indictments and large penalties should encourage more U.S. taxpayers with undisclosed offshore accounts, especially held at HSBC, to come forward before the government contacts them. The 2011 Offshore Voluntary Disclosure Initiative offers amnesty and is only open until August 31, 2011. It is critical for taxpayers to come forward before the bank identifies them to the Department of Justice and the IRS if they want to minimize their penalties and criminal exposure.
Patel Law Offices offers a strategy session to discuss how to resolve your legal problem. Conveniently schedule online today with our online scheduler and questionnaire.
Related Posts
- Latest Guilty Plea for an Another HSBC Offshore Bank Accountholder
- Another Customer with Unreported Offshore Bank Accounts Pleads Guilty
George Landegger, CEO of pulp and paper company, pleaded guilty last week in New York…
- IRS' Takes Legal Action Against Offshore HSBC Indian Accounts
Last week the U.S. Justice Department asked a federal district court in San Francisco to…
Search
Categories
Recent Posts
- US Supreme Court Will Favor Taxpayer Challenges to the IRS July 12, 2024
- Comments on Proposed Regulations on Transactions with Foreign Trusts and Reporting Large Foreign Gifts July 10, 2024
- IRS Form 8621 Frequently Misunderstood July 5, 2024
- IRS Criminal Investigations: A Serious Threat With Warning Signs July 2, 2024
- Handling an Unexpected Visit from IRS Criminal Investigation: Guidance for Taxpayers and Advisors June 28, 2024
- US Supreme Court Upholds Constitutionality of Repatriation Tax: Key Takeaways for Foreign Corporations June 26, 2024
- New NJ Law Makes it Easier to Transfer Motor Vehicle Ownership Upon Death June 25, 2024
- How to Respond or Contest an IRS Criminal Investigation Division (CID) Summons June 19, 2024
- IRS Criminal Investigation Division Summonses: A Key Tool in Tax Crime Investigations June 14, 2024
- Form 3520: A Comprehensive Guide to Navigating the Complexities of Foreign Gift Reporting Under the Latest 2024 Proposed Regulations June 4, 2024
- Detailed Technical Comments and Recommendations to the IRS on Proposed Regulations for Form 3520 and Code Section 6039F (REG-108066-22) June 2, 2024
- Top Six Criminal Tax Questions Asked May 27, 2024