Emeritus Professor of Business Administration Needs An Education on Paying Taxes

A professor at the University of Rochester, Dan Horsky pleaded guilty to conspiracy and had to pay a record $100 million penalty to the IRS for failing to disclose off-shore accounts.

Horsky amassed approximately $200 million by investing in start-up companies and held the funds in accounts in a bank in Zurich.  He didn’t disclose the funds to the IRS, or pay the required taxes on them.

Owners of offshore accounts are required to file a Foreign Bank Account Report (FBAR) with the government.  Failure to file an FBAR can result in a penalty of up to 50% of the offshore account balance. Horsky’s penalty is the largest FBAR penalty to date.

Horsky faces a possible prison sentence and additional monetary fines.  His sentencing hearing is scheduled for this month.