Cincinnati Tax Resolution Powered by Toph Sheldon 9200 Montgomery Rd., Ste. 7B Cincinnati, OH 45242
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National Relaxation Day Reminds Us to Chill Don’t Make the Same Financial Mistake as Chadwick Boseman IRS Slashes Tax Bill for eBay Evader Ashley’s Corner: Finding Time for Yourself Lime Chicken With Corn and Poblano Salad Philanthropist Admits to 6-Figure Tax Fraud and Moves On
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Confession Pays: Billionaire Comes Clean With IRS TOPH’S TAX NIGHTMARES!
The IRS’s biggest tax fraud case against an individual in the nation’s history had a large but fleeting impact on a secondary figure — one of the nation’s wealthiest philanthropists, who was linked to the scheme. The outcome shows the power of transparency, backed by a glossy reputation, to help defendants shed the stigma of headline-grabbing IRS charges. As part of a historic crackdown on undeclared offshore bank accounts, the IRS indicted Texas billionaire Robert Brockman in 2020 on charges of concealing and avoiding taxes on $2 billion in gains — the largest individual tax charge in history. Brockman died in 2022 at age 81, before the case came to trial. Also trapped in the IRS headlights, however, was another big catch — billionaire philanthropist Robert F. Smith, founder and CEO of Vista Equity Partners, chairman of Carnegie Hall, and the nation’s wealthiest Black citizen, according to Forbes magazine.
Beloved for his philanthropy, Smith was called a national hero in 2019 when he pledged during his commencement address at Morehouse College to pay off the student debt of the entire graduating class. Smith’s reputation was shaken after he admitted playing a supporting role in Brockman’s alleged tax evasion scheme. Brockman was Smith’s associate and an early investor. Court papers show an offshore corporation managed by Smith was involved in a plan called Project Hotrod, which enabled Brockman to avoid taxes on $635 million he transferred from his holding company to offshore vehicles, according to The Wall Street Journal. Philanthropy experts at the time questioned whether Smith should remain as Carnegie Hall’s chairman. Smith avoided prosecution, however, by reaching a settlement with the Department of Justice. He admitted that he had hidden $200 million of his own income in offshore trusts
and accounts and agreed to pay $140 million in taxes and penalties. He also agreed to cooperate with prosecutors in the Brockman case and said publicly that he regretted his mistakes. Meanwhile, the rest of the world was ready to forgive and forget. Smith kept his post as chairman of Carnegie Hall and remains CEO of Vista Equity Partners. “It’s hard to find somebody who’s that wealthy,” said an attorney specializing in nonprofits, “who doesn’t have some issue in the past.”
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