In a press release on their website, the IRS announced that it had reached a settlement with the accounting firm of BDO USA, LLP. As part of the settlement, BDO will pay slightly more than $34.4 million, a civil penalty handed down as a result of its failure to disclose tax shelters. In an effort to conceal the tax shelters from the IRS, and to assist high-income taxpayers in evading federal income taxes, BDO did not register various tax shelters as required by law.
The firm was charged with one count of engaging in a tax fraud conspiracy in the years spanning 1997 to 2003. Part of the agreement is a deferred prosecution portion for the criminal charge if specific conditions are met.
Along with the civil penalty, BDO will also cooperate with the IRS in civil matters, including IRS audits and litigation. The corporation has also promised to work with the IRS to ensure that it is in compliance with tax shelter provisions of federal tax laws.
According to the commissioner of the IRS Doug Shulman, the “enforcement action is another reminder that taxpayers can’t hide behind complicated schemes or corporate tax shelters.”
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