Few people would voluntarily overpay the IRS by hundreds of thousands of dollars, but one retired accountant did exactly that in a bid to hide money from his wife.
The CPA behind this creative scheme was preparing for a divorce, said Peggy L. Tracy, a certified financial planner and owner of Priority Planning in Wheaton, Illinois.
The accountant's wife — then Tracy's client — became suspicious after noticing her husband didn't file the couple's tax returns for two years. After asking the IRS for a history of tax payments made, Tracy uncovered a surprise.
"His tax bill every year was about $40,000, but we found out he was putting away hundreds of thousands in estimated payment vouchers and just leaving the money there," Tracy said.