In my book, Offshore Tax Evasion: IRS Offshore Voluntary Disclosure Program I strongly recommended against taxpayers entering the OVDP program due to risk of rejection and criminal prosecution.
On 1/22/15, the Ridgefield Press reported that George Landegger, age 77, CEO of Parsons & Whittemore, a pulp mill company which he sold to Georgia Pacific in 2010, plead guilty to hiding $8.4million in a Swiss bank account (held thru his sham Lichtenstein trust) and failing to disclose the account by filing FBARs.
After first rejecting the OVDP program, Landegger tried to move his accounts to Canada and Hong Kong.
When later he did try to enter the OVDP, the IRS rejected him and used the evidence against him.
His penalty: $4.2million (50% FBAR penalty) and $71k in taxes (income). He also faces 5 years in jail for tax evasion (to be sentenced 5/12/15).
In the words of Bob Dylan: “If you can’t do the time, don’t do the crime”.