William H. Nurick, age 76, was convicted of tax evasion based on evidence he evaded a tax liability for one year of $157,000. In 2000 Nurick filed an amended 1995 income tax return admitting a $106,542 tax liability. He then attempted to conceal his offshore financial assets from the IRS by transferring $133,000 from an offshore bank account to a third party’s offshore bank account, and then “borrowing” the funds back from the same party, and having that person file a trust deed against his real estate with the apparent purpose of making it appear that it had no equity. He then proceeded to file a false Form 433 with the IRS in support of an offer in compromise (OIC) which among other things failed to list his vehicle, or his offshore Costa Rican bank account with a balance of $200,000.
The IRS financial statement also underreported his income. The case is interesting for several reasons. One there is a perception that the IRS does not prosecute seniors. It does. There is also a belief that if you file an accurate tax return that’s the end of it. Not necessarily. There is a separate tax crime known as the evasion of payment. It too is a felony. Nurick faces up to 5 years in prison and a $250,000 fine.
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