In August 2013, an IRS auditor met with Jacobs, a chiropractor, to examine numerous issues with his federal income tax forms for 2011. During the initial interview, the auditor advised Jacobs that two $5,000 payments were not allowable deductions after Jacobs admitted that each was a payment to two different women after they accused him of touching them inappropriately during medical treatments. Jacobs told the auditor that he paid the women because he was concerned that they would report him to the police or to the chiropractic board. Jacobs admitted that he had begun kissing one woman’s feet while he was treating her. He also admitted to other inappropriate contact when he was giving the second woman a massage.
Jacobs asked the IRS auditor if there was anything he could do to “just deal with this…” When the agent said he could not “just deal with this,” Jacobs became agitated and combative, ultimately threatening the agent that he would “ruin [his] career.”
The following month, after several electronically monitored discussions regarding his non-deductible expenses, Jacobs offered to bribe the auditor in exchange for terminating the examination, saying, “. . . you want a bribe? You want me to pay you?...” The auditor, acting under the direction of law enforcement, then accepted Jacobs’s offer of $5,000 to give Jacobs a favorable audit letter showing no additional tax for one year and a small refund for the next year. Jacobs paid the auditor $5,000 in cash for the favorable treatment.According to another reports, the electronically monitored discussions included an email in which he opened the opportunity for a bribe: "You want a bribe? You want me to pay you?" Andy Sheets, Off the Beaten Tax: Girls Gone Wild Lawyers Sue IRS, 2015 TNT 11-5 (1/16/15). Well, even attempting a bribe is bad. Starting the discussion by email is not just bad it is dumb. Even dumber than kissing a patient's feet. And this is not to mention the stupidity in threatening an IRS agent.