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CRIMINAL FRAUD = CIVIL FRAUD

September 20, 2006

The punishment for tax fraud doesn't end with the jail time and fine. Henry Uscinski learned this the hard way. You still have to pay the taxes, and you face a 75% civil fraud penalty on top of that. From Taxable Talk:

Petitioner Henry Uscinski is an attorney who pleaded guilty to evading his 1996 income taxes by filing a fraudulent 1996 tax return. Mr. Uscinski repaid $1,590,000 in restitution. He further admitted that he had failed to report some funds from a client. So in March 2003 the District Court accepted the plea bargain, sentenced Mr. Uscinski to 42 months at Club Fed for tax evasion, and also imposed a $250,000 fine.

And now it's the IRS' turn.

Bottom line: bad news for Mr. Uscinski.

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