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September 5, 2008
NYC Tax Lawyer Pimp Indicted
New York City tax lawyer Louis J. Posner and his wife were indicted yesterday on charges that they operated a prostitution ring out of their Hot Lap Dance Club at the corner of 38th Street and Eighth Avenue. The indictment claims that customers could have sex with dancers in private rooms at the club for $200 - $5,000. (For Mr. Posner's prior legal troubles, see here.)
From Mr. Posner's firm profile:
Posner is a highly experienced tax attorney with experience in federal tax planning and research. Posner has represented over 100 taxpayers in IRS audits, IRS appeals, U.S. Tax Court proceedings and suits in the U.S. District Court. ...
Prior to being in private practice, Posner had over 10 years of large firm experience. As a Tax Specialist with the General Tax Counsel's Office of Integrated Resources, Inc., a major NYSE listed financial services firm, Posner was involved with the analysis of the tax and financial aspects of Private Placement Memorandums in real estate and equipment leasing, as well as representation before the IRS and U.S. Tax Court on behalf of syndicated limited partnerships. Prior to being in the financial services sector, Posner was a Tax Supervisor and Audit Senior with International and "Big 4" CPA firms where he serviced major clients in real estate, banking and international commerce.
Posner holds an M.S. in Taxation from Pace University in New York City in 1985 and a J.D. from New York Law School in New York City in 1989.
(Hat Tip: Jack Bogdanski.)
September 5, 2008 in News | Permalink
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Comments
I have this from my tax outline -
Business expenses are generally deductible and there is no blanket rule that a business expense won’t be deductible if it is incurred for illegal or unethical activities. However, in a number of instances the Code specifically disallows business expense deductions for activities that are viewed as unseemly.
For example, most kickbacks, bribes, penalties and fees, for instance, are specifically non-deductible. See §162.
§ §162(c)(1) disallows any deduction for bribes paid.
§ §162(f) broadly disallows any deduction for fines paid for violations of law
§ §280E disallows deductions for expenses incurred in trafficking illegal drugs
Posted by: Doug | Sep 5, 2008 11:14:11 PM
According to the Daily News, the cops seized over $550,000 from the club and the owner even though there is no conviction and you are suppose to be innocent until proven guilty. This would be an asset forfeiture and under the tax laws would be considered a nondeductible fine. It is really egregious that the government can take your money and then you are left paying the tax on it.
Posted by: Joe S | Sep 7, 2008 3:23:18 AM
