GG,
As I mentioned in the other thread, we don't know if the immunity deal she entered with the federal prosecutors included not only immunity from criminal prosecution but also civil liability to the federal government (IRS). It's quite possible that it did. If I were her attorney, I would have sought a release of all civil claims by the government as part of the immunity deal. The immunity deal is being reported, but its scope is unknown at this time.
If the immunity is as to criminal prosecution only, her attorney (Buchwald) would likely work out a deal with the IRS to pay a slightly higher tax on the new income in exchange for a release of any claims of taxes on the prostitution income. These kinds of deals get worked out all the time. The IRS can be tough to negotiate with but if there are no liquid assets like real estate they have less leverage. With real estate, they would be very tough to strike a deal with. If there are less assets on hand they will likely have to take any bone that Buchwald will throw them. And if she has no real estate or bank account where she sunk the prostitution income, Buchwald likely will only throw them a bone.
As I mentioned in the other thread, we don't know if the immunity deal she entered with the federal prosecutors included not only immunity from criminal prosecution but also civil liability to the federal government (IRS). It's quite possible that it did. If I were her attorney, I would have sought a release of all civil claims by the government as part of the immunity deal. The immunity deal is being reported, but its scope is unknown at this time.
If the immunity is as to criminal prosecution only, her attorney (Buchwald) would likely work out a deal with the IRS to pay a slightly higher tax on the new income in exchange for a release of any claims of taxes on the prostitution income. These kinds of deals get worked out all the time. The IRS can be tough to negotiate with but if there are no liquid assets like real estate they have less leverage. With real estate, they would be very tough to strike a deal with. If there are less assets on hand they will likely have to take any bone that Buchwald will throw them. And if she has no real estate or bank account where she sunk the prostitution income, Buchwald likely will only throw them a bone.