Skip to Main Content
 

Scott Michel Talks to Tax Notes on Offshore Enforcement

April 29, 2019, Tax Notes

It’s never really about the taxes, even when it is about the taxes.

Readers will recall Chuck Blazer, the U.S. soccer executive who, after being threatened with criminal prosecution for failing to file income tax returns for many years, agreed to wear a wire to help federal prosecutors snare many corrupt North and South American soccer officials. Hiding in plain sight, the morbidly obese Blazer lived large — his extravagant lifestyle financed by CONCACAF, where he served as general secretary. Blazer, who lived on the 49th floor of Trump Tower, was himself one of the most corrupt soccer officials in history, which is saying something.

. . .

[Discussing the case of U.S. v. Horsky, where the defendant entered a guilty plea arising from his failure to report a large account at a Swiss bank…]

Horsky paid a willful penalty, and that is thought to have reduced his sentence far below the guidelines. “The government’s requirement that criminal pleas include the 50 percent FBAR penalty has without a doubt contributed to the low sentences in these cases,” said Scott Michel of Caplin & Drysdale, which represented Horsky.

. . .

[Discussing the difficulties presented by the detail required for a taxpayer to “preclear” into the IRS’s new voluntary disclosure regime…]

Michel concurred, noting problems with previous disclosure procedures. The purpose of pre-clearance is to confirm the taxpayer’s eligibility without incriminating admissions. “Unless the IRS issues guidance stating that information provided in pre-clearance will not be otherwise used against a taxpayer if the taxpayer is rejected, the requirement for such extensive disclosures on the new form will have a significant chilling effect on the voluntary disclosure process,” he said.

For the full article, please visit Tax Notes’ website (subscription required).

Excerpt taken from the article “Nerds and Cops, Part 3: The New Matrix" by Lee A. Sheppard for Tax Notes.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at www.caplindrysdale.com.
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
202.862.5000
New York, NY Office:
600 Lexington Avenue
21st Floor
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
© 2019 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practice Area(s)