Tax Penalties on Unreported Foreign Assets: Who Foots the Bill?

By Bryan C. Skarlatos and Michael Sardar
Unreported Foreign Assets
2014-15, Volume 27, Number 1

Brian and Helena are getting divorced. Brian has a successful electronics company that sells products around the world. Several years ago, a European customer owed a lot of money to Brian’s company and Brian instructed the customer to divert part of the payment to a numbered bank account in the Channel Islands controlled by Brian. The account now has a little over one million dollars. Helena has always known about the account and now she is threatening to tell the judge, or worse, call the Internal Revenue Service, unless Brian agrees to her settlement proposal.

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