Jupiter Attorney Sentenced Federally for Filing False Tax Returns with the IRS
A Jupiter trust and estate attorney, who filed false personal income tax returns with the Internal Revenue Service (IRS), was ordered to pay $923,695 in restitution.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Kathleen Kozinski, previously pled guilty to a criminal information charging her with two counts of filing a false tax return, in violation of Title 26, United States Code, Section 7206(1), for tax years 2008 and 2011. United States District Judge Robin L. Rosenberg in West Palm Beach sentenced Kozinski to eight months’ incarceration, to be followed by a year of supervised release and ordered her to pay $923,695 in restitution to the IRS to reflect unpaid and underreported taxes due and owing for tax years 2007-2102.
According to court documents, Kozinski was an attorney with a solo estate planning and probate practice, Kathleen G. Kozinski, PA, located in Jupiter, Florida. For tax years 2007 through 2012, Kozinski failed to report all of her income on her individual Form 1040 tax returns.
Specifically, Kozinski willfully failed to report all of the gross receipts from Kathleen G. Kozinski, PA on her Form 1120S, Income Tax Return for an S Corporation. Shareholders of S corporations are required to report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. Kozinski underreported her income on her individual Form 1040 tax returns by not reporting all of the gross receipts from her law practice on her Form 1120S.
In addition to not including all of the gross receipts, Kozinski also falsely claimed “mortgage write-off” losses in the amount of $137,293.00 in tax year 2007, while she knew she had not provided an actual loan to another individual and was not entitled to this deduction. In tax year 2011, Kozinski claimed a loss of $113,745 on a “Schedule F Farm Loss” by falsely claiming that she paid labor expenses and insurance expenses, but the defendant did not operate a farming business and knew she was not entitled to these deductions. In 2012, Kozinski claimed a “Home Office” expense of $39,001, but the defendant knew that she was not entitled to claim this deduction because she did not have a home office.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney Aurora Fagan.