Here's the latest article from the Accounting site at BellaOnline.com.
Forensic Accounting is Challenging
Forensic accounting is a field plenty of opportunities. The business world has been taking over by fraud schemes and forensic accountants are making a difference by bringing to the surface what has been hidden to investors, bankers, and government agencies.
FAFSI case of the week© - Why Tax Evasion? it Could Have Been Tax Avoidance.
Tax avoidance - Searching transactions and timing events that minimize tax liabilities.
Tax evasion – No reporting income or claiming fictitious or improper deductions, etc
Who? Four accountants
Why? Tax Fraud Scheme
How? These fraud schemes took multiple forms, among them, the use of false documentation for fictitious currency transaction losses, false insurance expense deductions and bogus capital losses, all for the purpose of fraudulently offsetting taxable income for clients. The schemes utilized, among other things, offshore companies, offshore bank accounts, the services of offshore nominees and opinion letters that purported to give legal authority to the fraudulent transactions.
What did they do? Fraudulent schemes to conceal portions of their clients’ income from the IRS and to create false deductions for the purpose of reducing their income tax.
What if they are found guilty? One of them was found guilty and sentenced to 120 months in prison and restitution of $2,8Million.
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Consuelo Herrera, CAMS, CFE, Accounting Editor
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