Tuesday, November 3, 2020

Tax Protester Used Offshore Insurance Wrappers and Precious Metals to Attempt to Hide Assets from the IRS

According to DoJ, a Alabama, salesman was sentenced to 24 months in prison on October 27, 2020 for tax evasion. 

According to court documents and statements made in court, Ivan Scott “Scott” Butler was an automobile industry consultant and sold automobile warranties as an independent salesman. 

  • In 1993, Butler stopped filing tax returns and attended tax defier meetings and purchased tax defier materials. 
  • Starting in 1998, Butler used several Nevada nominee corporations to receive his income and conceal it from the IRS. 
  • In or around 1999, Butler moved hundreds of thousands of dollars to bank accounts in Switzerland and hid his assets in offshore insurance policies held in the name of non-U.S. insurance providers, thus disguising his ownership of the funds. 
  • Such accounts, which generally are used as investment vehicles, are commonly known as “insurance wrappers.”  
  • In 2014, Butler converted some of his insurance wrappers into precious metals, which were shipped to Butler and another individual in the United States. 
  • Some of those precious metals were given to friends and family for safekeeping. 
In total, Butler caused a tax loss to the IRS of $1,093,400. On March 6, 2020, Butler pleaded guilty to tax evasion. 

In addition to the term of imprisonment, U.S. District Judge Annemarie Carney Axon ordered Butler to serve three years of supervised release and to pay approximately $1,093,400 in restitution to the United States.

Need Help Coming Clean with the IRS?

Contact the Tax Lawyers at 
Marini & Associates, P.A.
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or Toll Free at 888-8TaxAid (888 882-9243)

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