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Bank Leumi Hands Over Another US Depositor to the IRS

Bank Leumi Hands Over Another US Depositor to the IRS

According to DoJ, Israel Birman pleaded guilty on November 14, 2018 in U.S. District Court for the Central District of California to filing a false federal tax return on which he failed to report interest income he earned from bank accounts at Bank Leumi Le-Israel B.M.
 
According to court documents, between 2006 and 2014, Israel Birman held offshore bank accounts in Israel at Bank Leumi and Israel Discount Bank.  The accounts had balances over $10,000 each year, which required the filing of Reports of Foreign Bank and Financial Accounts (FBARs) with the Department of the Treasury.

In 2013, Israel Birman’s bank accounts at Israel Discount Bank had a total value of over $3.4 million. Israel Birman did not file FBARs for 2006-2014. Israel Birman instructed Bank Leumi to hold bank mail from delivery to the United States, and obtained access to his offshore funds through the use of “back-to-back” loans from Bank Leumi USA collateralized by his undeclared Bank Leumi funds.

In 2009 and 2010, Israel Birman earned taxable interest income on his Bank Leumi bank accounts totaling over $187,000. He failed to report that interest income on his 2009 and 2010 federal tax returns.

“The Department Of Justice Continues to Vigorously Investigate and Prosecute Offshore Account Holders

Who Maintain Undeclared Accounts and Willfully Ignore
Their US Reporting and Tax Obligations,”
Said Principal Deputy Assistant Attorney General Zuckerman.
 

In December 2014, Bank Leumi entered into a deferred prosecution agreement after the bank admitted to conspiring from at least 2000 until early 2011 to aid and assist U.S. taxpayers to prepare and present false tax returns by hiding income and assets in offshore bank accounts in Israel and other locations around the world. Under the terms of the deferred prosecution agreement, Bank Leumi paid the United States a total of $270 million and continues to cooperate with respect to civil and criminal tax investigations.

Sentencing is scheduled for January 28, 2019. Birman faces a maximum sentence of 3 years in prison, as well as a period of supervised release, restitution and monetary penalties.

As part of the plea agreement, Israel Birman has agreed to pay a civil penalty of not less than $1,709,883, representing 50% of the balance in his Israel Discount Bank account in 2013.

Do You Have Undeclared Offshore Income?
 
 
Is Your Name Being Handed Over to the IRS?
  
Want to Know Which Remaining OVDP Program is Right for You?
 
 
Contact the Tax Lawyers at 
Marini& Associates, P.A.  
 
 
 
for a FREE Tax Consultation Contact us at:
or Toll Free at 888-8TaxAid (888) 882-9243


 

Read more at: Tax Times blog

 
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