YOUNGSTOWN– Attorneys with the Tax Division of the Treasury Department have submitted a problem versus a Boardman chiropractic specialist declaring she owes $366,558 plus interest for failing to report foreign bank accounts to the federal government.
The problem was filed Tuesday in U.S. District Court, declaring that Denise Carradine, owner of Carradine Chiropractic Center Inc. and Breath of Vitality Inc. Pilates studio, both of Boardman, opened an account with the Swiss bank Maerki Baumann & & Co. in 2006 and deposited about $814,000 in the account through June 2008.
She put funds from her business in the account, the suit states.
She later transferred the funds to an account with Grand Palm Ltd. in the Turks and Caicos Islands and then closed that account in 2014 and transferred the funds to the United States.
She did not divulge the presence of the Maerki or Grand Palm accounts or a domestic savings account to her income tax return preparer for the tax years 2006 through 2012, the match alleges.
Carradine's lawyer, Roger Stewart, stated he and Carradine do not comprehend why a claim was submitted against Carradine because she addressed her concerns with the federal government in the past, “and it was all solved.”
Stewart said he suspects this is a case in which the “left hand (of the federal government) doesn't know what the right-hand man is doing.”
In 2014, Carradine employed a new tax return preparer and amended her income tax return for 2006 through 2012 to report income of about $450,000, the fit states. No interest earnings from the foreign accounts was reported on any changed return, and none of the returns were submitted with the government, the fit states.
Carradine obtained “preclearance” in the Internal Revenue Service's Offshore Voluntary Disclosure Program, the suit states. The OVDP is for taxpayers dealing with possible criminal liability and/ or substantial civil charges for willfully stopping working to report foreign financial properties and pay all tax due as a result of those possessions, according to the IRS site.
The fit declares Carradine was required to report foreign savings account, securities or other monetary accounts in 2007 through 2013 in a form called a Report of Foreign Bank and Financial Accounts, but she did not submit the types.
As an outcome, an assessment of $366,558 was levied against Carradine Dec. 21, 2018, by the Treasury Department, and Carradine is responsible for a late-payment charge and interest, bringing the total to $399,808, the match states.
The match was submitted by Richard Zuckerman, primary deputy assistant attorney general for the tax department of the Justice Department.
Judge Benita Pearson and Magistrate Carmen Henderson are assigned to the case.