Simultaneously with the SEC, the IRS unsealed their charges for tax evasion and willful failure to file tax returns
following the arrest of John McAfee in Spain. The charges relate to the same unlawful activities alleged by the SEC as well as to Mr. McAfee’s consulting work, speaking engagements, and selling rights to his life story for a documentary, for which he allegedly received income but failed to report it and pay income taxes.
The U.S. tax law requires U.S. taxpayers to file an annual income tax return regardless of their country of residence. Willful failure to file a tax return is considered a misdemeanor and can lead to a fine of not more than $25,000 or imprisonment of not more than one year, or both, for each count of violations. The IRS alleged that John McAfee did not file his income tax return from 2014 to 2018.
Moreover, the IRS alleged that Mr. McAfee deliberately directed his income to be deposited into bank accounts and cryptocurrency exchange accounts of other people. According to the IRS, Mr. McAfee also concealed his assets, including real property, a vehicle, and a yacht, in the names of others as an attempt to evade his tax liability. Tax evasion is a much more serious crime and is considered a felony. If convicted, Mr. McAfee can face up to a $100,000 fine or imprisonment for not more than five years, or both, for each count.
John McAfee appears to be fighting all charges brought against him by the U.S. authorities.
Summarized by Katrina Arden
Attorney and founder of Blockchain Law Group