Attorney Failed to Report Income from Priest Abuse Case: Court

An attorney must pay a penalty after failing to report income from clients who were abused by priests, the U.S. Tax Court held.

“Although it has a tangled background, this is a simple case,” Judge L. Paige Marvel said in a decision Thursday, noting that the attorney specialized in tax fraud defense.

The Internal Revenue Service found that Lon B. Isaacson owed $2.82 million in 2007 taxes as well as $1.94 million in civil fraud penalty under code Section 6663, among other things, for failing to keep adequate records and concealing income he earned from ...