[taxabletalk] Russ: More Tax Fraud

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Posted by Russ:
More Tax Fraud
http://www.taxabletalk.com/posts/1225683111.shtml


   There's lots of fraud to report this week. Here are some more of the
   lowlights.
   First, the Treasury Inspector General for Tax Administration (TIGTA)
   [1]issued a report noting that over $1.6 billion in false refunds were
   estimated to have been issued in the 2006 and 2007 filing seasons. The
   IRS did intercept about $1.5 billion in fraudulent refunds during
   2007. It's a big problem, and the IRS acknowledges this. This report
   is also making [2]news, and this will likely lead to Congressional
   pressure to intercept even more of the phony claims.
   I've reported [3]twice on [4]Dr. Garland Miller. The former parish
   coroner for Sabine Parish, Louisiana kept two sets of books, embezzled
   from a local hospital, and then didn't file tax returns. Earlier this
   year he was found guilty of tax evasion. [5]This past week he was
   sentenced to four years at ClubFed and must make restitution of
   $55,471 to the hospital and $89,130 to the IRS (plus interest). Dr.
   Miller had purchased a publication from the discredited Save a Patriot
   Foundation that said that you didn't have to pay income tax. He'll
   have four years to find some better reading material.
   Glenn Lockwood is a dentist in Kenai, Alaska. [6]He was found guilty
   last week of four counts of tax evasion. He allegedly used those old
   favorites--sham trusts and phony tax shelters--to avoid income taxes.
   Add to that deductions for such things as $1,504 spent at Mabel's
   House of Prostitution in Nevada, and clothing bought as uniforms at
   Dress Barn and a big and tall shop. (Yes, dental labcoats are
   deductible because they can't be worn in normal wear but general
   clothing isn't.) Dr. Lockwood will likely get to spend some time at
   ClubFed instead of Mabel's.
   And now let's look at a Bozo tax preparer. [7]Antonio Adams and Marla
   Wells thought up an interesting scheme. They recruited people to file
   false tax returns in Atlanta. They provided their helpers with a phony
   W-2 and then had them file returns using refund anticipation loans so
   they could quickly grab their share of the loot. Apparently Mr. Adams
   went to the bank with his clients, brandished a gun, and made sure
   that he got their share of the loot. Mr. Adams and Ms. Wells didn't
   think this scheme through; sooner or later the IRS was going to
   attempt to match the W-2s and when they couldn't an investigation
   would be opened. About $222,000 of fraudulent refunds made it through
   but the IRS did stop $60,000 once they realized what was occurring.
   Mr. Adams fled Georgia when charges were filed but was later
   apprehended by the US Marshal's Service. He pleaded guilty, and will
   have 51 months at ClubFed to think things through. He must also make
   restitution of over $117,000.
   Next, let's head to North Tonawanda, New York. Gregory Fisher decided
   to just lie on his tax returns. From 2004 through 2006 he reported
   that he had lots of money withheld but didn't owe that much in tax.
   The only trouble with that was he had nothing withheld. Sooner or
   later the IRS was bound to have a problem matching $1.3 million with
   $0. Mr. Fisher received $503,000 in false refunds. He also cheated a
   local car dealer out of $1.2 million, and the local police let the FBI
   & IRS know about the situation. [8]Mr. Fisher pleaded guilty and will
   make restitution of about $2.1 million. He'll be spending some time at
   ClubFed, too.
   That's a lot of fraud for one week. Do yourself a favor and remember
   if it sounds too good to be true it probably is.

References

   1. http://www.ustreas.gov/tigta/auditreports/2008reports/200810172fr.pdf
   2. http://www.foxnews.com/wires/2008Oct30/0,4670,IRSFraud,00.html
   3. http://www.taxabletalk.com/posts/1175482958.shtml
   4. http://www.taxabletalk.com/posts/1215998546.shtml
   5. http://news.google.com/news/url?sa=t&ct=us/0-1&fp=490e738c03251979&ei=RnAOSdywBJTaggOsx7mSDg&url=http%3A//www.shreveporttimes.com/apps/pbcs.dll/article%3FAID%3D/20081101/NEWS03/811010349/1062&cid=1265347694&usg=AFQjCNFsqjWYgKIeBDslQfmgyDRYOrtQaA
   6. http://www.fortmilltimes.com/124/story/344168.html
   7. http://www.bizjournals.com/atlanta/stories/2008/10/27/daily90.html
   8. http://www.buffalonews.com/home/story/478416.html