# For your consideration - undercover tax advisers



## Bevdeforges (Nov 16, 2007)

Saw thisi n the NY Times today and just couldn't resist passing it on:
http://www.nytimes.com/2014/11/16/u...-using-undercover-operations.html?ref=us&_r=0

The interesting bit is this:


> At the Internal Revenue Service, dozens of undercover agents chase suspected tax evaders worldwide, by posing as tax preparers, accountants drug dealers or yacht buyers and more, court records show.


I suppose the lesson from this is not to just grab the first tax preparer or accountant you find in the phone book - at least not if you're looking to "push the envelope" on your tax dealings.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

That wouldn't be the lesson to draw.

There's another "problem" if you're looking to "push the envelope": most tax preparers and accountants don't want to go to prison! There's a criminal offense known as conspiracy to defraud the United States -- specifically, conspiracy to commit tax fraud. The 5th, 13th, and 88th tax preparer shouldn't want to help you in such circumstances, for his/her own sake.

Moreover, the IRS pays bonuses to those who uncover and report tax evasion. Bradley Birkenfeld got over $100 million as an example -- and was also prosecuted and served time in prison for a single count of conspiracy to commit tax fraud, so he got both ends of the deal (controversially). Prosecutors were able to recover $52 million from Igor Olenicoff alone and stop his further tax evasion. Olenicoff was only one of Birkenfeld's many clients. Even if you're a tax preparer or accountant with a few clients -- or one "big fish" client -- the whistleblower rewards can be massive, especially if your whistleblowing can unravel a whole network of tax evasion.

Finally, the DOJ recently won its first successful "naked" FBAR prosecution of a client who lied to his accountant on a tax questionnaire. The questionnaire asked whether he had any foreign accounts, and the client answered "no." He actually did, and his one word answer on that questionnaire was enough to find him guilty of FBAR evasion. All tax preparers and accountants have such questionnaires (or the verbal equivalent), so if you lie to him/her you generate excellent evidence that can be used to prosecute you.

The actual lesson here is "don't lie."


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## Bevdeforges (Nov 16, 2007)

Actually, the lesson probably is more like, if you find a tax "advisor" willing to go with your lies, consider that it might be an IRS agent working undercover! <g>

Seriously, the field of tax advice is not regulated, particularly overseas. Just about anyone can hang up a shingle to offer tax advice, so you do have to be careful about the qualifications of whoever you choose to have advising you.
Cheers,
Bev


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