Florida man admits hiding $1.1M from IRS
An 83-year-old Florida man pleaded guilty Tuesday to hiding at least $1.1 million from the IRS in secret Switzerland and Israel bank accounts for more than a quarter century.
Delray Beach resident Bernard Kramer, held the secret accounts from 1987 to about 2012. He used the code phrase “Hot Lips” to refer to them in communications with Swiss bankers in Zurich, where he opened the first account, according to a criminal filing in Manhattan federal court.
Kramer pleaded guilty to conspiracy and agreed to cooperate with government investigators and pay a civil penalty of $588,042 along with past due taxes.
Kramer is the latest of dozens of wealthy Americans prosecuted for allegedly ducking taxes on income held in accounts overseas.
Kramer initially maintained the secret Swiss account after it became publicly known in 2008 that Swiss banking giant UBS was being investigated by U.S. authorities for allegedly helping American account owners evade federal taxes.
U.S. law requires citizens and residents to file annual IRS reports disclosing domestic and foreign income.
Source: Usatoday
