Fraudulent Tax Shelters Kmpg Goes Down Hard

Fraudulent Tax Shelters Kmpg Goes Down Hard



Fraudulent Tax Shelters – KMPG Goes Down Hard
In the​ largest criminal tax case ever filed,​ KMPG has copped a​ plea to​ using fraudulent tax shelters to​ bilk the​ government out of​ 2.5 billion dollars .​
KMPG has agreed to​ pay a​ fine of​ $456 million dollars,​ but nine of​ its executives still are under indictment.
Son of​ Boss Tax Shelters
From 1996 to​ 2003,​ KMPG promoted a​ tax strategy known as​ the​ Son of​ Boss .​
This shelter was used to​ create phony tax losses that could be claimed by wealth individuals looking to​ write off tens of​ millions of​ dollars .​
KMPG promoted the​ structure despite the​ fact it’s own internal tax attorneys warned the​ structure was fraudulent and could result in​ criminal charges .​
So far,​ wealthy individuals participating in​ the​ scheme have paid over $3.7 billion dollars to​ the​ IRS.
There should be no mistaking the​ impact of​ the​ plea agreement in​ this case .​
KMPG may have enjoyed the​ huge fees earned from the​ scam,​ but it​ is​ paying an​ incredible price for pursuing this practice .​
The price paid includes:
1 .​
456 Million Dollar Fine,​
2 .​
Permanently barred from providing tax services to​ wealthy individuals,​
3 .​
Permanently barred from involvement in​ any pre-packaged tax strategies,​
4 .​
Permanently barred from charging a​ contingency fee for work,​
5 .​
All actions monitored by government appointee for three years,​
6 .​
Full cooperation with government in​ indictments of​ individual KMPG employees.
Remaining Indictments
While KMPG pled guilty,​ it​ left its employees out to​ dry .​
An interesting maneuver since one can assume KMPG enjoyed the​ millions of​ dollars produced from the​ fraudulent tax shelters .​
Those under indictment,​ who are all now former employees,​ are:
1 .​
Jeffrey Stein,​ former Deputy Chairman of​ KPMG,​ former Vice Chairman of​ KPMG in​ charge of​ Tax and former KPMG tax partner;
2 .​
John Lanning,​ former Vice Chairman of​ KPMG in​ charge of​ Tax and former KPMG tax partner;
3 .​
Richard Smith,​ former Vice Chairman of​ KPMG in​ charge of​ Tax,​ a​ former leader of​ KPMG’s Washington National Tax and former KPMG tax partner;
4 .​
Jeffrey Eischeid,​ former head of​ KPMG’s Innovative Strategies group and its Personal Financial Planning Group and former KPMG tax partner;
5 .​
Philip Wiesner,​ former Partner-In-Charge of​ KPMG’s Washington National Tax office and former KPMG tax partner;
6 .​
John Larson,​ a​ former KPMG senior tax manager;
7 .​
Robert Pfaff,​ a​ former KPMG tax partner;
8 .​
Mark Watson,​ a​ former KPMG tax partner in​ its Washington National Tax office.
In Closing
In the​ end,​ KMPG led clients down a​ very dangerous path for the​ apparent purpose of​ generating revenue .​
While even bad publicity is​ supposed to​ be good publicity,​ this situation seems to​ suggest the​ opposite.




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