Simmons, an insurance agent from Jefferson, North Carolina, was convicted on the conspiracy charge, 11 counts of aiding in the filing of false returns, and five counts of filing false tax returns for himself between 2016 and 2020.
Michael Kohn Tax Fraud Case: Scheme Details
According to trial testimony, Kohn and Chollet restructured their clients’ businesses as limited partnerships with a charitable organization to reduce taxable income, a tactic they termed the “gain elimination plan.” Instead of distributing income to the nonprofit, clients were advised to collateralize the debt with a substantial life insurance policy, often facilitated by Simmons, prosecutors alleged.
Kohn, Chollet, and Simmons were accused of attracting clients to this scheme by amending their tax returns with inaccurate deductions, leading to significant tax savings.
Legal Arguments for Acquittal
Kohn and Simmons’ recent briefs reiterated their previous arguments for acquittal, claiming the reported financial figures on the disputed tax returns were “literally true” as per IRS instructions.
