Indian-American indicted for not reporting HSBC India account

Wisconsin-based Dr Arvind Ahuja, a board certified neurosurgeon, wire transferred and maintained millions of dollars in bank accounts in India and the Bailiwick of Jersey at The Hongkong and Shanghai Banking Corporation Ltd (HSBC), according to the indictment.
In 2009, his HSBC bank account in India had a balance of USD 8,733,785.

The indictment alleges that Ahuja did not report these bank accounts to the Internal Revenue Service’s (IRS) on his 2006-2009 tax returns.

The indictment further says the neurosurgeon failed to report more than USD 1.2 million in interest income that he earned from his HSBC India account and not paid taxes due on that income.

For the 2006-2009 tax years, he also failed to file the Reports of Foreign Bank and Financial Accounts (FBARs) to the Department of the Treasury.

US citizens have an obligation to report to the IRS whether they had a financial interest in, or signature authority over, a financial account in a foreign county in a particular year.
They further have to report all income earned from foreign financial accounts on the tax return and to pay the taxes due on that income. Separately, US citizens with a financial interest in, or signatory authority over, a foreign financial account worth more than USD 10,000 in a particular year, must also file an FBAR form with the Department of the Treasury disclosing such an account by June 30 of the following year.

Each false tax return charge carries a maximum penalty of three years in prison and a USD 250,000 fine. The failure to file FBAR charges each carry a maximum penalty of 10 years in prison and a USD 500,000 fine.

A trial date has not yet been set.  An indictment is merely an allegation, and Ahuja is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law, the Department of Justice said in a statement.