Under Tax Investigation : Jimmy J. Chen & Associates, Inc.

Charitable Private Foundations by Jimmy J. Chen, CPA of Jimmy J. Chen & Associates, Inc. are Under Tax Investigation

The State of California, by and through the San Jose District Attorney’s office filed tax charges against Jimmy Chen, CPA of Milpitas. According to the California Statewide Law Enforcement Association blog entry (see entry here):

  • San Jose – A California Franchise Tax Board Investigation has led to charges against a South Bay accountant who is accused of taking donation deductions from his charitable foundation to pay for personal expenses, including a luxury condo in Taiwan.
  • According to a Franchise Tax Board investigation, Jimmy Chen, 62, of Saratoga, set up a foundation to grant scholarships to rural students in Taiwan. The investigation shows that Chen set up the tax-exempt ChenSung Family Foundation in 2004.

In addition, it appears that Mr. Chen also advised individuals and families as to how they could set up their own private charitable foundation and gave seminars on how to do so through- out Northern California. The press release for the District Attorneys office indicates, ” Evidence further shows that Chen gave seminars on charitable foundations and helped others to set up the foundations similar to his for a fee.” In the tax world, we call this concept ‘promoters’ and what ends up happening the promoters contacts are investigated for potential tax violations. These violations can result in civil, monetary penalties as well as criminal charges.

We have set up a resource and will continue to add additional information that may be helpful to those affected by this (and other) investigations of charitable foundations.