Mary Bennett, Narendrakumar Patel and Eugenia Burks Sentenced in Alabama Stolen Identity Refund Fraud Conspiracy

Source- http://www.justice.gov/tax/2013/txdv13357.htm

Conspirators Defrauded Federal Government and Several States

WASHINGTON – Mary Bennett, Narendrakumar Patel and Eugenia Burks, all residents of Elmore County, Ala., were sentenced for their roles in an identity theft and tax fraud scheme. Bennett was sentenced today to 75 months in prison; Patel was sentenced yesterday to 24 months in prison; and Burks was sentenced yesterday to 18 months in prison. Bennett had previously pleaded guilty to conspiracy to commit mail and wire fraud, as well as aggravated identity theft, while Burks also had pleaded guilty to conspiracy. Patel pleaded guilty to forging state securities. Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally, Acting U.S. Attorney for the Middle District of Alabama Sandra J. Stewart, the U.S. Secret Service and the Internal Revenue Service (IRS) made the announcement.

According to court documents, the defendants were part of a conspiracy to fraudulently obtain both federal income tax refunds as well as state income tax refunds from several different states by using stolen identities to file false tax returns. Fraudulently obtained refund checks were mailed to various addresses used by the conspiracy, while other refunds were obtained through direct deposits into numerous bank accounts controlled by the conspiracy. Bennett admitted to being the one responsible for actually filing the false tax returns and also to storing stolen identity information at her home. Some of the checks obtained by the scheme were cashed by Patel, the former owner of a check-cashing business, who admitted that he knowingly cashed the forged checks and shared in the proceeds.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Justin D. Schoenauer Idaho Home Builder Sentencend for Tax Evasion

Source- http://www.justice.gov/tax/2013/txdv13355.htm

WASHINGTON – Justin D. Schoenauer, 41, also known as Corey J. Schoenauer, a resident of Twin Falls County, Idaho, was sentenced late yesterday in U.S. District Court for the District of Idaho to 27 months in prison for income tax evasion. Schoenauer was also sentenced to three years of supervised release and ordered to pay $429,436 in restitution. Schoenauer was indicted in February 2012 and pleaded guilty to the offense on Oct. 30, 2012.

According to court documents, Schoenauer was a general contractor who, for the past 10 years, operated a sole proprietorship called Patagonia Construction, a business engaged primarily in building homes. Schoenauer admitted that during tax years 2005 through 2008, he concealed Patagonia's business receipts. Schoenauer further admitted that he directed some customers to make checks payable to him personally, rather than to Patagonia, then ensured that those checks were not deposited into Patagonia's main bank account. When having tax returns prepared, Schoenauer falsely told his return preparer that all of his business receipts were deposited into the main Patagonia bank account, thereby concealing Patagonia's gross receipts and causing the preparation and filing of false tax returns. Schoenauer paid the Internal Revenue Service (IRS) $35,000 at sentencing, which will be applied to his outstanding tax liability.

"When a business owner cheats on his taxes, he gains an unfair advantage over honest businesses and cheats all honest taxpayers," said Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally. "This sentence shows that we will hold such criminals accountable."

"Paying income tax is a solemn obligation of citizenship," said U.S. Attorney for the District of Idaho Wendy J. Olson. "Integrity in business transactions required to be reported to the federal government is essential to the proper functioning of our economy. Those who hide income, evade taxes and launder profits undermine our democracy. This sentence sends a strong message that those who seek to avoid their tax responsibilities will be properly punished."

"The license to run a business is not a license to evade paying taxes," said Richard Weber, Chief, IRS Criminal Investigation. "Mr. Schoenauer's misconduct, concealing business receipts and having checks made payable to himself, is offensive to all honest business owners. IRS Criminal Investigation continues to protect the U.S. tax system by investigating and bringing to justice individuals who violate tax laws."

Assistant Attorney General Keneally and U.S. Attorney Olson commended the efforts of special agents from IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Michael J. Romano and Mark L. Williams, who prosecuted the case.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Inmate Sentenced for Filing False Tax Returns While in Alabama Federal Prision

Source- http://www.justice.gov/tax/2013/txdv13352.htm

WASHINGTON – David Marrero, a federal inmate in the custody of the Bureau of Prisons, was sentenced today to 46 months in prison for tax fraud committed while in prison, the Justice Department and the Internal Revenue Service (IRS) announced. Twenty-four months of the sentence imposed will run concurrent with Marrero's current 10 year federal sentence, and 22 months will run consecutive to his 10 year sentence. Marrero had pleaded guilty in December 2012 to filing false claims.

According to court documents, while serving his federal sentence in Montgomery County, Ala., Marrero began sending various false documents to the IRS and to the federal judge who had presided over his case in Florida. Among the documents Marrero sent were fictitious money orders and false tax returns making claims for refunds, including one tax return claiming a $2,719,438 refund-the amount of restitution Marrero had been ordered to pay following his conviction in Florida. The fraudulent tax returns were based upon false IRS Forms 1099-OID on which Marrero had fraudulently claimed that various companies withheld a substantial amount of federal taxes from him when, in fact, the companies had withheld nothing. Marrero also used financial documents he had obtained from other people, without their knowledge or consent, as supporting documentation for his fraudulent claims.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Justice Department's Civil Injunction Program Shuts Down Fraudulent Tax Return Preparers and Tax Fraud Promoters

Source- http://www.justice.gov/tax/2013/txdv13350.htm

Federal Courts Enjoined More than 30 Tax Return Preparers and Tax Scheme Promoters in Past Six Months

WASHINGTON – The Justice Department today announced recent results of its civil injunction efforts to combat unscrupulous tax return preparers and tax fraud promoters. According to Internal Revenue Service (IRS) estimates, 60 percent of taxpayers use tax professionals to prepare and file their tax returns. Paid tax return preparers now prepare more than 80 million individual tax returns annually. For more than a decade, the department's Tax Division, working with the Internal Revenue Service, has pursued a civil injunction program to stop fraudulent return preparers and promoters from violating federal tax laws and consumer protection laws. With the current tax-filing season underway, the Tax Division in the last six months has obtained permanent injunctions against more than 30 preparers and promoters doing business all over the United States.

Since Oct. 1, 2012, the Tax Division has obtained civil injunctions against both large-scale return preparation franchises and smaller, independent return preparers and promoters across the country. For example, on Oct. 22, 2012, a U.S. District Court in Dayton, Ohio, entered preliminary injunctions against ITS Financial LLC and its CEO, Fesum Ogbazion. ITS Financial is the parent company that owns the Dayton-based Intstant Tax Service tax-preparation franchise operation. Instant Tax Service claims to be the fourth-largest tax-preparation firm in the nation. The preliminary injunction remains in force pending trial on the government's request for a permanent injunction, currently scheduled for May 2013. During December, January and February, federal district courts also permanently enjoined current and former Instant Tax Service franchisees in Las Vegas, Kansas City and Los Angeles, and entered a preliminary injunction against an Instant Tax Service franchisee in Indianapolis. Similarly, on March 1, 2013, a U.S. District Court in Tennessee permanently shut down a licensee of Memphis-based Mo' Money Taxes LLC and MoneyCo USA LLC. Federal courts have also shut down return preparers in Mississippi, Florida, Louisianaand South Carolina, and promoters of alleged tax-fraud schemes in Michigan, New York and Kansas.

As alleged in the Tax Division's civil injunction complaints, fraudulent return preparers commonly falsify information to take advantage of refundable credits available under federal tax law, often improperly manipulating customers' income, expenses and dependents to hit the so-called "sweet spot" to maximize the refundable credit claimed. They also take advantage of customers by selling deceptive loan products with exhorbitant fees. As identified in the government's complaints, some of the fraudulent schemes and practices that have been stopped through injunction orders recently include:
Preparing phony tax-return forms with fabricated businesses and income;
Claiming false education and homebuyer credits;
Claiming false and inflated deductions;
Claiming false filing status;
Claiming false dependents;
Selling deceptive loan products;
Filing tax returns without customer consent or authorization;
Preparing bogus W-2 forms, based on information from employee paystubs;
Falsifying information on returns to claim inflated earned income tax credits; and
Filing fraudulent tax returns using stolen taxpayer identities to obtain improper tax refunds.

Some preparers try to conceal their fraud by not signing the returns they prepare and by using stolen or fake social security numbers to misidentify the paid preparer.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

James Timothy Turner Self-Proclaimed "President" of Sovereign Citizen Nation Convicted in Alabama of Federal Tax Crimes

Source- http://www.justice.gov/tax/2013/txdv13344.htm

WASHINGTON – A federal jury in Montgomery, Ala., found James Timothy Turner, also known as Tim Turner, guilty late Friday of conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the Internal Revenue Service (IRS), failing to file a 2009 federal income tax return and falsely testifying under oath in a bankruptcy proceeding, the Justice Department, the IRS and the FBI announced today.

Based on the evidence introduced at trial and court filings, Turner, the self-proclaimed "president" of the so-called sovereign citizen group "Republic for the United States of America" (RuSA), traveled the country in 2008 and 2009 conducting seminars teaching attendees how to defraud the IRS by preparing and submitting fictitious "bonds" to the United States government in payment of federal taxes. Although the evidence at trial revealed the bonds are fictitious and worthless, witnesses testified that Turner used special paper, financial terminology and elaborate borders in an effort to make them look "real" and more likely to succeed in defrauding the recipient. Turner was convicted of sending a $300 million "bond" in his own name and of aiding and abetting others in sending fifteen other “bonds” to the Treasury Department to pay taxes and other debts.

The evidence at trial also established that Turner taught people how to file retaliatory liens against government officials who interfered with the processing of fictitious "bonds." Turner filed a purported $17.6 billion maritime lien in Montgomery County, Ala., Probate Court against another individual. Finally, evidence presented at trial demonstrated that the FBI began an investigation after Turner and three other individuals sent demands to all 50 governors in the United States in March 2010 ordering each governor to resign within three days or be "removed."

"The jury's verdict in this case sends a message that defrauding the government and others through the use of bogus financial documents will not be tolerated," said Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally. "Disagreement with the law is no excuse for the real harm caused by these self-interested tax defiers."

"These sovereign citizen groups use these retaliatory tax liens and fraudulent tax schemes as weapons against the United States and its citizens," stated Acting U.S. Attorney Sandra J. Stewart. "It is only the hard work of law enforcement that can stop these criminals from using these financial weapons. I would like to thank the law enforcement officers who worked vigilantly on this case to bring this criminal to justice."

"Those who create elaborate schemes and fraudulent tax elimination tactics run a high risk of prosecution," stated Richard Weber, Chief, IRS Criminal Investigation. "Mr. Turner's attempts to thwart the IRS, as well as the assistance and training he provided to others, was not tax planning, it was criminal activity. IRS-Criminal Investigation is committed to vigorously pursuing those who promote illegal financial transactions designed to evade the payment of taxes. For those who would consider similar behavior, let this case be a strong warning that there is no secret formula for evading the payment of taxes and no one is above the law."

Turner remains in federal custody pending sentencing. Turner faces a potential maximum prison term of 164 years, a maximum potential fine of $2,350,000 and mandatory restitution.

"The prosecution of individuals who intentionally impede the IRS by submitting fictitious and frivolous documents, in an attempt to avoid paying federal taxes, is a vital element in maintaining public confidence in our tax system," stated Veronica Hyman-Pillot, Special Agent in Charge of IRS Criminal Investigation. "Hopefully the verdict will send a message to other individuals like Turner, that this conduct will not be tolerated."

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Preparer Allegedly Falsifies Tax Returns at Cost of Millions to U.S. Treasury

Source- http://www.justice.gov/tax/2013/txdv13331.htm

WASHINGTON – The United States has asked a federal court in Montgomery, Ala., to bar Kenya Hendrix Adams from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Adams has repeatedly prepared federal tax returns that understate her clients' federal tax liabilities. The suit alleges that Adams did so by falsely claiming or inflating tax credits or fabricating deductions.

The suit alleges that the IRS has completed examinations of 315 returns prepared by Adams and that 88 percent of those returns understated the filing taxpayer's liability. Because Adams prepared almost 2,000 returns over a five year period between 2007 and 2012, the suit alleges that the harm to the U.S. Treasury as a result of her conduct could be in the millions of dollars.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Sentenced to More Than 11 Years in Prison for Preparing False Tax Returns Claiming Hundreds of Thousands of Dollars in Refunds

Source- http://www.justice.gov/tax/2013/txdv13322.htm

WASHINGTON – Tyrone Thompson was sentenced today to 137 months in prison by U.S. District Judge Hugh Lawson in the Middle District of Georgia for conspiracy and filing fraudulent tax returns in order to receive tax refunds, to which the defendant was not entitled, the Justice Department and Internal Revenue Service (IRS) announced. In addition to Thompson, the scheme involved four others who had already been sentenced. Judge Lawson also ordered Thompson to pay $516,363 in restitution to the IRS. In October 2012, all five defendants pleaded guilty to filing a false claim for tax refunds. In addition, Thompson pleaded guilty to conspiracy to file false claims for tax refunds.

According to court documents, Thompson organized a scheme in which he prepared and filed fraudulent federal income tax returns using the names of other individuals. He included with the returns fictitious Schedules C reporting business income and losses and also claimed false First-Time Homebuyer Credits, in order to obtain tax refunds to which he and his co-defendants were not entitled. He directed fraudulently-obtained refunds to be deposited to his co-defendants' bank accounts. The attempted tax refund fraud exceeded $400,000.

"Today's lengthy jail sentence sends a strong message that those who would consider committing tax fraud should think carefully about the serious risks involved," said Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally. "As millions of honest, hard-working taxpayers prepare and file their tax returns, they should be assured that those who would shirk their civic duty or try to 'game the system' will be investigated by the IRS and, where appropriate, criminally prosecuted by the Department of Justice."

"These folks are stealing from every good tax paying citizen, and we won't tolerate it," said U.S. Attorney for the Middle District of Georgia Michael J. Moore.

"Tyrone Thompson organized a scheme to file fraudulent tax returns using the identities of third parties in order to receive false refunds," said Richard Weber, Chief, IRS Criminal Investigations. "Mr. Thompson cheated the government by filing false Schedule C and false First-Time Homebuyer Credit forms to increase the fraudulent tax refunds. IRS Criminal Investigation has made investigating refund fraud a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system."

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Federal Court Permanently Bars Crystal Ireland From Preparing Tax Returns Claiming The Earned Income Tax Credit

Source- http://www.justice.gov/tax/2013/txdv13308.htm

Tax Preparer Allegedly Prepared Returns Claiming Bogus Dependents and with Fabricated Business Income to Falsely Maximize Earned Income Credits

WASHINGTON – A federal court has permanently barred Crystal Ireland, of Detroit, who does business as Master Mind Preparation, from preparing federal tax returns that claim the earned income tax credit, the Justice Department announced today. The civil injunction order, to which Ireland consented, was signed by Judge Bernard Friedman of the U.S. District Court for the Eastern District of Michigan.

The complaint in the case alleged that Ireland failed to comply with due diligence requirements imposed by federal law on tax preparers who claim the earned income credit on customers' returns. According to the complaint, Ireland fabricated businesses and reported fake business income on her customers' tax returns in order to claim the maximum credit for them.

The complaint alleged that the Internal Revenue Service penalized Ireland in 2010 for failing to comply with federal law due diligence requirements, yet a 2011 follow-up investigation revealed ongoing failures and fraudulent claims. According to the complaint, Ireland prepared at least 2,300 returns from 2008 through 2011, with unusually high refund rates ranging from 97 to 99 percent for those years.

The permanent injunction order also bars Ireland from preparing forms Schedule C on which she knowingly fabricates income or expenses, preparing tax returns on which she knowingly claims a dependent that does not actually qualify as a dependent of the taxpayer, and preparing tax returns on which she fails to identify herself as the paid preparer or falsely identifies someone else as the paid preparer.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Owner of Tax Preparation Business Sentenced in Alabama to Federal Prison

Source- http://www.justice.gov/tax/2013/txdv13304.htm

“Premier Tax” Operated in Multiple Locations in Alabama and Georgia

WASHINGTON – Bruce King, the founder and operator of Premier Tax, was sentenced today in Montgomery, Ala., to 70 months in prison and ordered to pay $781,305 in restitution to the Internal Revenue Service (IRS) for orchestrating a tax fraud scheme at his business, the Justice Department and the IRS announced. King had previously pleaded guilty to charges of conspiring to defraud the United States and filing false tax returns.

According to court documents, Premier Tax was a tax preparation business operated by King that had several locations in Alabama and Georgia. King held training sessions in which he taught preparers how to falsify tax returns in order to fraudulently increase clients' tax refunds. Those he taught went on to work at Premier Tax and filed numerous false tax returns. According to court documents, the tax loss caused by these fraudulent returns exceeded $1 million. To date, seven return preparers trained by King have also pleaded guilty and been sentenced.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Marlen Monzon and Yanko Rodriguez Court Bars South Florida Tax Return Preparers From Preparing Returns for Others

Source- http://www.justice.gov/tax/2013/txdv13299.htm

WASHINGTON – A federal district judge in Miami permanently barred Marlen Monzon, her son Yanko Rodriguez, and their Miami business, Tri Stars Multiservices Corporation, from preparing federal income tax returns for others, the Justice Department announced today.

According to the government's complaint, Monzon and Rodriguez prepared federal income tax returns in Miami through Tri Stars Multiservices, Corporation. As alleged, the returns prepared by Monzon and Rodriguez included fabricated claims for business expenses on customers' returns even when the customers did not own or operate a business. The complaint further alleged that these fabricated expenses offset the customer's wage income and improperly lowered the customer's reported taxable income. These fabricated expenses generated (or increased) customers' refunds, and often qualified customers for credits to which they were not entitled. The complaint alleged that nearly every one of the 498 returns that the Internal Revenue Service (IRS) examined for tax years 2008 through 2011 claimed that the customer operated a business and reported a business loss. According to the complaint, the IRS has determined that the U.S. Treasury lost more than $3.4 million in revenue as a result of Monzon and Rodriguez’s misconduct.

Monzon, Rodriguez and Tri Stars consented to the entry of the injunction.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Justice Department Bars James M. Unterreiner II from Preparing Tax Returns

Source- http://www.justice.gov/tax/2013/txdv13296.htm

WASHINGTON – A federal court has granted the United States' request to permanently bar James M. Unterreiner II from preparing tax returns, the Justice Department announced today. According to the government complaint, from 2002 until 2003, Unterreiner worked for Tax Resolutions Inc., where he assisted owner Irvin H. Catlett Jr. and others in marketing a tax evasion scheme in which Tax Resolutions' clients made investments in various sham companies and reported bogus tax losses. Unterreiner consented to the injunction.

As the Justice Department previously announced, testimony heard at Catlett's nine-day criminal trial in 2010 showed that Tax Resolutions prepared fraudulent tax returns for its clients that included fictitious business losses which Tax Resolutions falsely claimed resulted from automobile leasing and sales. The fake losses reduced the amount of taxable income and total tax reported by Tax Resolutions' clients. As a result, the clients falsely claimed refunds from the Internal Revenue Service (IRS).

Testimony at that trial also showed that Unterreiner assisted Catlett and helped perpetuate the scheme by preparing client tax returns by first determining each client's tax and then adding to the return a fictitious loss from a tax shelter entity large enough to reduce the client's tax due to zero. Unterreiner continued the scheme even after Catlett was imprisoned on other charges. As a result of the scheme, approximately 275 tax returns were filed with the IRS which reported bogus losses, resulting in a tax loss to the United States in excess of $3 million.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Bryant Thompson and Quincy Walton Indicted for Stolen Identity Tax Refund Fraud

Source- http://www.justice.gov/tax/2013/txdv13292.htm

WASHINGTON – A 29-count indictment was unsealed today in Montgomery, Ala., charging Bryant Thompson, an Alabama corrections officer, and Quincy Walton, a former Alabama corrections officer, with federal tax crimes, the Justice Department and the Internal Revenue Service (IRS) announced. Thompson and Walton are both charged with one count of conspiracy to defraud the United States; Thompson is additionally charged with 10 counts of wire fraud and 10 counts of aggravated identity theft, and Walton is additionally charged with four counts of theft of government money and four counts of aggravated identity theft.

According to the indictment, Thompson, a corrections officer at the Alabama Department of Corrections, unlawfully obtained the names and Social Security numbers of inmates in the custody of the state of Alabama and caused to be filed false tax returns in the names of those inmates. The IRS issued tax refund checks in the names of inmates whose identities Thompson unlawfully obtained and Walton cashed those checks.

An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty.

If convicted, Thompson and Walton face a maximum sentence of five years in federal prison for the conspiracy count, a maximum of 20 years for each wire fraud count, a maximum of 10 years for each theft of government money count and a minimum of two years for aggravated identity theft. In addition to prison time, Thompson and Walton also face the possibility of fines and restitution to the IRS and other victims.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Angela Myers Tax Return Preparer Convicted of Stolen Identity Refund Fraud

Source- http://www.justice.gov/tax/2013/txdv13285.htm

WASHINGTON – Following a four-day jury trial in Baton Rouge, La., a federal jury convicted Angela Myers today of wire fraud, making false claims, subscribing to false tax returns and aggravated identity theft, the Justice Department and Internal Revenue Service (IRS) announced.

Based on the evidence presented at trial, Myers operated "Angie's Tax Service," a tax preparation business located in Baton Rouge. Myers electronically filed false claims for tax refunds using the names and Social Security numbers of identity theft victims. Myers filed the identity theft tax returns using a unique preparer identification number assigned to her daughter. Many of the victims were nursing home patients who resided at Port Allen Care Center in Port Allen, La., and who did not have the ability to leave the nursing home.

The evidence also revealed that Myers lied on her own 2007 and 2008 federal income tax returns, failing to report hundreds of thousands of dollars of tax preparation fees that she earned at Angie's Tax Service and used to buy various items, including an RV and a $50,000 investment product.

"Prosecuting stolen identity refund fraud is a top priority of the Justice Department," said Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally. "The verdicts returned today demonstrate that the American people will not tolerate criminals who prey on the most vulnerable in our society to enrich themselves."

"Identity theft is a very serious crime that victimizes honest taxpayers and causes immense hardship," stated Richard Weber, Chief, IRS Criminal Investigation. "Many of Myers' victims were nursing home patients. Be assured that IRS has made a commitment to pursue identity theft and we will work tirelessly with our partners at the U.S. Attorney's Office to hold those who engage in similar conduct accountable."

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Corey Means was Sentenced to 20 Months in Prison for Their Role in a Million Dollar Identity Theft Tax Scheme

Source- http://www.justice.gov/tax/2013/txdv13283.htm

WASHINGTON – Corey Means was sentenced yesterday to 20 months in prison and Melba Wilson to eight months home detention for their involvement in a million dollar identity theft tax scheme, the Justice Department and the Internal Revenue Service (IRS) announced.

According to court documents, between October 2009 and April 2012, Antoinette Djonret and her co-conspirators used stolen identities to file over 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Djonret orchestrated this scheme. She obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money. Djonret recruited Corey Means, Melba Wilson and others into the conspiracy. Melba Wilson and Corey Means recruited individuals to obtain prepaid debit cards and gave the cards to Djonret. Corey Means also provided addresses to Djonret for the purpose of receiving prepaid debit cards. The fraudulent tax refunds obtained by the conspiracy were directed to these prepaid debit cards and Djonret and her co-conspirators would then use the cards to obtain the proceeds. Djonret was previously sentenced to 144 months in prison for her role in this scheme and for other criminal conduct.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

William B. Clayton Pleads Guilty to Tax Obstruction

Source- http://www.justice.gov/tax/2013/txdv13266.htm

WASHINGTON – William B. Clayton, a residential builder formerly of Corolla, N.C., pleaded guilty today before Judge Terrence W. Boyle to corruptly obstructing and impeding the due administration of the tax laws, the Justice Department and the Internal Revenue Service (IRS) announced.

According to the indictment, Clayton failed to file federal income tax returns over a six-year period, resulting in the assessment of taxes and penalties and the initiation of IRS collection proceedings. Between May 2007 and August 2010, Clayton took steps to obstruct the IRS's efforts to collect his unpaid tax liabilities, such as concealing property from the IRS and destroying a former property in Corolla that had been acquired by the government. According to court records, in an effort to pay down Clayton's tax liabilities, the IRS scheduled a public auction of Clayton's former property. In the days leading up to the auction, Clayton committed, or caused the commission of, various acts of destruction and demolition at the Corolla property, including destroying an outdoor pool deck and pool house, forcibly removing a guest house from the property and transporting it to a non-consenting neighbor's property, and forcibly removing cabinets, counter tops, a kitchen island, sinks, toilets and light fixtures.

Clayton's sentencing hearing is scheduled for May 28, 2013. Clayton faces a maximum potential penalty of three years in prison, one year of supervised release and a $250,000 fine.

Matthew Bender Charged With Preparing False Tax Returns

Source- http://www.justice.gov/tax/2013/txdv13247.htm

WASHINGTON – Matthew Bender, a paid preparer of tax returns residing in Detroit, was charged in a superseding indictment with preparing false tax returns and tax obstruction, the Justice Department, Internal Revenue Service (IRS), and the Treasury Inspector General for Tax Administration (TIGTA) announced today.

Bender had been arrested on a portion of those charges on January 10, 2013. The superseding indictment charges Bender with 16 counts of assisting in the presentation of false tax returns to the IRS along with one count of corruptly endeavoring to obstruct the due administration of the Internal Revenue laws.

According to the superseding indictment, between 2004 and 2012, Bender prepared returns for taxpayers that falsely claimed refunds and contained false deductions and tax withholdings. The superseding indictment also alleges that Bender filed false tax returns for himself for 2007 and 2009 and failed to file his own tax returns for 2003, 2004, 2005, 2006, 2008, 2010, and 2011.

An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a potential maximum sentence of three years in prison and a $250,000 fine on each count.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Justice Department Prevails in Tax Shelter Case Involving $1 Billion in Tax Deductions

Source- http://www.justice.gov/tax/2013/txdv13246.htm

WASHINGTON – A federal court in Baton Rouge, La., on Monday rejected two tax shelter transactions entered into by The Dow Chemical Company that purported to create approximately $1 billion in phony tax deductions. In addition to rejecting the tax benefits from the shelter transactions, Chief Judge Brian A. Jackson also imposed penalties.

As stated in the opinion, the schemes were created by Goldman Sachs and the law firm of King & Spalding, and involved creating a partnership that Dow operated out of its European headquarters in Switzerland. Chief Judge Jackson wrote in his 74-page opinion that the government was correct to reject the artificial tax benefits created by these schemes that were designed to exploit perceived weaknesses in the tax code and not designed for legitimate business reasons. Judge Jackson noted that "tax law deals in economic realities, not legal abstractions." Judge Jackson also wrote that penalties were appropriate because any reasonable and prudent person should have known that the artificial tax benefits created by the scheme were "too good to be true." Judge Jackson noted in his opinion that "Dow viewed its tax department as a profit center," and had at its disposal "numerous lawyers and tax professionals."

Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division hailed the Louisiana court's opinion. "It is offensive to all taxpayers who pay their fair share when our largest corporations believe that they can claim hundreds of millions of dollars in tax deductions that are manufactured by abusive tax schemes," said Keneally. Keneally thanked the agents and attorneys at the Internal Revenue Service who assisted the Justice Department, as well as Tax Division trial attorneys, Thomas Sawyer, Robert Welsh, Thomas Koelbl and Philip Schreiber.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com