US Targets Bahamas Trust Assets to Satisfy $28 Million Tax Debt

A tax debtor owing more than $27.8 million to the federal government should be ordered to repatriate assets held in the Bahamas to satisfy his outstanding bill, the US told a federal court in West Palm Beach, Fla.

Burt Kroner filed for Chapter 11 bankruptcy protection after he failed to convince the US Tax Court his cash transfers to two overseas trusts could be excluded from his taxable income, resulting in an $18.2 million liability for 2005–2007 that accumulated interest. The bankruptcy petition stayed the IRS’s collection efforts, but in December 2024, Kroner elected to exclude his Bahamas trusts from ...