The following are the key stats:
Defendant: Mary Estelle Curran
Plea: Tax Perjury (2 counts)
Maximum Possible Sentence: 6 years.
Indicated Guidelines Range: 30-37 months
Conviction/Plea Date: 1/8/13
Age at Conviction: 79
Bank: UBS and an unnamed Liechtenstein bank.
Estimated Tax Loss: Per plea - $400,000 - $1 million
High Balance: > $43,000,000 (year end)
FBAR Penalty: $21,666,929 (50% of year-end high balance)
Court: SD FL
Judge: Kenneth L. Ryskamp (Wikipedia entry here)
Article: David Voreacos, UBS Client Pleads Guilty in U.S. Tax Case in Florida (Bloomberg 1/8/12) here.
Some points I found interesting:
Civil Statute of Limitations Issues
The plea agreement provides:
9. The defendant agrees to cooperate with the Internal Revenue Service ("lRS'') in its civil examination, determination, assessment, and collection of income taxes related to the defendant's 200l through 2007 income tax returns, and further agrees not to conceal, transfer, or dissipate funds or property that could be used to satisfy such taxes, penalties, and interest. The defendant agrees to provide the IRS any documentation in the defendant's possession and/or control requested by the IRS in connection with its civil examination, determination, assessment, and collection of such income taxes prior to sentencing. The defendant further knowingly and voluntarily agrees to waive any statute of limitations with respect to assessment and collection of the defendant's individual and corporate/entity tax liabilities concerning tax years 2001 through 2007.Question to readers: Can a taxpayer waive an expired statute of limitations? I am not so sure. Section 6401(a)(1) provides that "The term “overpayment” includes that part of the amount of the payment of any internal revenue tax which is assessed or collected after the expiration of the period of limitation properly applicable thereto." Further, Section 6501(c)(4) provides that extensions by agreement must be signed "before the expiration of the time prescribed." It is my understanding that, as a consequence of these provisions, an agreement to extend or a waiver of the statute of limitations would not be effective. Of course, for years in which the taxpayer's conduct rose to the level of fraud, the unlimited statute of limitations would apply. Section 6501(c)(1). But, this provision assumes that the fraud unlimited statute of limitations may not be applicable. Note in this regard that relatively small amounts involved in some of the years (2002, 2003, 2004) and there is no tax loss indicated for 2005.
Waiver of Rule 6(e)
The plea agreement provides:
10. The defendant further agrees that any evidence, including statements and documents, provided to the United States by the defendant pursuant to a Proffer Agreement, without any limitations, can be utilized by the United States in its civil examination, determination, assessment, and collection of income taxes related to his income tax returns and any related corporate/entity tax returns, or any other civil proceeding. The United States does not deem this, in any way, to be a waiver of the defendant's attorney-client privilege with respect to any attorney.I think this is a waiver intended to permit the IRS to use information and documents that might otherwise be subject to Rule 6(e). I am not sure that legally that can be done, but at least the defendant gives up her right to complain about it.