Wealthy entrepreneur Samuel Wyly and the estate of his deceased brother Charles have been ordered to pay the U.S. Government a total of $188 million plus significant interest for unpaid taxes on the proceeds from unreported offshore trusts under their control. According to court records, the Wylys operated a group of offshore trusts in the Isle of Man in order to trade securities of public companies that they controlled. The offshore trusts allowed the brothers to avoid paying U.S. taxes on the income they were gaining from the trading, as the Wylys were able to convince the companies not to issue 1099-MISC forms. Judge Shira A. Scheindlin of the U.S. District Court for the Southern District of New York issued the order to pay $188 million, noting that it was solely based upon the Wylys’ offshore tax evasion, rather than the securities violations. The severity of the penalty serves as a clear indication of the priority the U.S. government places on stopping offshore tax evasion. For questions about taxation of offshore assets, including trusts, contact the experienced tax attorney at Daniel Rosefelt & Associates, LLC, Attorney & CPA to discuss your legal options.