$350 million in income is what a defense contractor allegedly tried to hide from the IRS. Although unsuccessful, since he was arrested this July of 2024 in Ibiza, Spain.<\/p>\n
Edelman became a millionaire during the United States\u2019 post-9\/11 military efforts in Afghanistan and the Middle East. His defense contracting business received more than $7 billion from contracts with the U.S. Department of Defense to provide jet fuel to U.S. troops in Afghanistan and the Middle East.<\/p>\n
He tried to use Delphine, his French wife to escape US taxation. He tried to say that Delphine founded and owned the defense contracting business. And because she was a French citizen residing abroad, she did not have U.S. tax obligations. Although he was a 50% owner of the defense contracting business. Edelman told this false story of Delphine\u2019s ownership to various arms of the U.S. government, including to a Subcommittee of the U.S. House of Representatives during a 2010 Congressional investigation, to the Department of Defense during contract negotiations, to the Internal Revenue Service in a 2015 application to the Offshore Voluntary Disclosure Program, and to the Department of Justice in a 2018 presentation.<\/p>\n
In addition, the IRS says that he tried to hide his defense contracting profits into foreign banks. He used banks who were known to shield account holder identities from U.S. authorities. Edelman used banks in Switzerland, the Bahamas, Singapore, and the United Arab Emirates. And on top of that he held the accounts in the name of non-U.S. entities that were created in other foreign countries, Panama, Belize, and the British Virgin Island.
\nWell, this didn\u2019t stop the IRS Criminal Investigation Division, who, in collaboration with Britain, Spain, and The Joint Chiefs of Global Tax Enforcement (known as the J5) caught up on his scheme. If you didn\u2019t know, the J5 brings together the taxing authorities of Australia, Canada, the Netherlands, the United Kingdom, and the United States.
\nEdelman used these funds he tried to conceal from the IRS to fund his other business ventures around the world. He also had a business selling internet services to U.S. troops and contractors at Kandahar Air Base in Afghanistan. Also, he had a Mexican fuel infrastructure project, and a music television franchise in Eastern Europe. He allegedly also used the money to buy a ski chalet in Austria. Plus, he bought a house in Spain and a townhouse in London. He also bought multiple yachts\u2014all of which were purchased in the name of nominees.<\/p>\n
Now, if you didn\u2019t know, if you have or control foreign bank accounts and assets or foreign business interests you might need to report them not only to the IRS, but also, to the Financial Crimes Enforcement Network (FinCEN). Edelman and Delphine are charged with conspiring to defraud the United States and 15 counts of tax evasion. Edelman also is charged with two counts of making false statements to the United States, and 12 counts of willfully violating his foreign bank account reporting obligations, as part of a pattern of unlawful activity. They both face many years of prison.<\/p>\n Now keep in mind, the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.<\/p>\n You can check our YouTube channel<\/a> for more subjects that you might find useful. If you are in need of a good CPA firm\u00a0contact<\/a>\u00a0us!<\/p>\n This material is for informational purposes only. It does not constitute tax, legal or accounting advice.<\/p>\n","protected":false},"excerpt":{"rendered":" $350 million in income is what a defense contractor allegedly tried to hide from the IRS. Although unsuccessful, since he was arrested this July of 2024 in Ibiza, Spain. The Story Edelman became a millionaire during the United States\u2019 post-9\/11 military efforts in Afghanistan and the Middle East. His defense contracting business received more than […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-1077","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"entry"},"_links":{"self":[{"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/posts\/1077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/comments?post=1077"}],"version-history":[{"count":3,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/posts\/1077\/revisions"}],"predecessor-version":[{"id":1080,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/posts\/1077\/revisions\/1080"}],"wp:attachment":[{"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/media?parent=1077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/categories?post=1077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/tags?post=1077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nYou can see some of the rules and IRS forms regarding foreign assets here: form 8938<\/a>, form 8858<\/a>, form 8865<\/a>, form 5471<\/a>, form 3520<\/a> and form 8621<\/a>. But you should consult with a tax professional if you have such assets.<\/p>\nConclusion<\/h2>\n