A Scarsdale investment broker is suing the IRS and New York Department of Taxation to release him from paying nearly $3 million in state and federal taxes.
Alex Forschner's attorney filed the cases on Aug. 18 as adversarial proceedings in U.S. Bankruptcy Court in White Plains, where he recently petitioned for Chapter 11 bankruptcy protection.
Forschner says he did not pay personal income taxes for six years, 2015 through 2020, on the advice of his accountants.
In 2015, he realized he had insufficient funds to pay his personal taxes. He claims that his accountants advised him not to file tax returns, because doing so would trigger an immediate and harmful collection action. Instead, he should wait to file when he had the funds.
Forschner says the accountants repeated the advice every year through 2020, and he was "unaware of the legal and monetary implications of the advice."
Forschner has worked in the investment industry for 17 years, according to bankruptcy records. He is president of Exome Asset Management, a Manhattan firm that focuses on healthcare assets. Previously, he was senior managing director of investments and venture capital for Maxim Group, in Manhattan, where, he says, he oversaw a $1 billion flow of deals.
On June 16, he petitioned for Chapter 11 bankruptcy protection. He has declared nearly $2.9 million in assets and $3.7 million in liabilities.
His primary asset is his house in Scarsdale, valued at $2.1 million. He lists $106,481 in personal and household items, including a wine collection worth $4,800 and five luxury watches -- two Rolexes, a Patek Phillipe, a Audemars Piguet and a Radiomir -- valued at nearly $94,000. His retirement accounts and other financial assets total $646,110.
He owes the IRS $2,844,557 and New York $122,736. Besides the unpaid taxes, his greatest liabilities are $781,098 for a home mortgage and $97,219 in credit card and bank debts.
His income was $448,705 in 2023 and $156,000 in 2024. He estimated his current gross monthly income at $27,315 and expenses at $27,066, leaving a surplus of $249 a month.
Forschner states in a July 8 affidavit that he petitioned for bankruptcy protection because he can't keep up with his debts and he needs to restructure his finances.
He traced his troubles to February 2022, when the IRS seized his assets and froze his accounts. "Further, I have been saddled with excessive penalties and interest" on the IRS debt.
Forschner accused his former accounting firm, D'Alessio Tocci & Pell, of accounting malpractice, August 2022 in Manhattan Supreme Court. By following the firm's advice, he claimed he "incurred catastrophic losses" and missed the opportunity to negotiate an amicable resolution with the IRS.
The accounting firm denied Forschner's allegations and argued that any losses he suffered were the result of his own conduct. In October 2023, Forschner agreed to discontinue the case.
Forschner is represented by Eastchester bankruptcy attorney Dawn Kirby.