Alabama Doctor Must Pay Fraud Penalties for Income Diversion

An Alabama doctor is liable for civil tax fraud penalties after diverting hundreds of thousands of dollars in medical clinic receipts into personal bank accounts and providing false income figures to his accountant, the US Tax Court said Wednesday.

Mohammad Fawad Aryanpure, a licensed medical doctor who co-owned MedExpress LLC, committed tax fraud from 2011-2014 by concealing business income from his certified public accountant and from the IRS, Judge Rose E. Jenkins said. Jenkins sustained deficiencies and 75% in fraud penalties—more than $375,000—against Aryanpure.

Aryanpure’s wife Malika is also a medical doctor who co-owned the company. Mohammad Aryanpure deposited ...