TaxFraudBlawg

WRS | Exclusive: UBS whistleblower Birkenfeld outed Credit Suisse bankers

fraudblawg — Mon, 21 Mar 2011 18:13:30 +0000

WRS | Exclusive: UBS whistleblower Birkenfeld outed Credit Suisse bankers

Enron Whistleblower Scores $1.1M Reward from IRS

fraudblawg — Mon, 21 Mar 2011 16:01:02 +0000

Enron Whistleblower Scores $1.1M Reward from IRS.

IRS Issues Final Regs on Disclosing Return Information to Whistleblowers

fraudblawg — Mon, 21 Mar 2011 15:58:56 +0000

IRS Issues Final Regs on Disclosing Return Information to Whistleblowers.

Fraud Recovery Group Sued for Allegedly Manipulating Theft Loss Deduction

fraudblawg — Tue, 20 Apr 2010 00:59:09 +0000

Tobias Elsass and his company Fraud Recovery Group offer contingent fee services on promised tax refunds, “target[ing] potential customers who have experienced significant investment losses,” reports DoJ. The federal government has sued Elsass and Fraud Recovery Group in the U.S. District Court for the Southern District of Ohio, seeking an injunction to prevent the defendants from preparing tax returns. Elsass is a lawyer who is suspended from practicing law, says DoJ. According to the Complaint, clients of Fraud Recovery Group have repeatedly filed returns claiming theft losses that could not be proven, did not qualify for the deduction, and could more accurately be described as simply investment losses.

To report Major Tax Fraud, contact Frohsin & Barger.

Government Sues to Stop “Tax World” Owners in Birmingham

fraudblawg — Thu, 15 Apr 2010 13:25:16 +0000

John Lewis, Artels James and Perry Wright and their tax preparation business — “Tax World” — were sued by DoJ yesterday in federal District Court in Birmingham seeking an injunction to stop them from preparing tax returns for others. According to the DoJ, Tax World “prepare[d] returns for customers that falsely claim the earned income tax credit and report other false income and expense items.” According to the Complaint, Lewis, James, and Wright:

“employed two schemes to wrongfully claim the credit: falsely claiming dependents or qualifying children where the claim could not be substantiated; and overstating earned income. The complaint also alleges that Lewis, James and Wright claimed fabricated business deductions on some customers’ returns.”

To report Major Tax Fraud, contact Frohsin & Barger.

Alabama Cities Win First Round on Lodging Tax Case Against Orbitz, et. al.

fraudblawg — Thu, 01 Apr 2010 15:46:28 +0000

Orbitz, Travelosity, Priceline, and other similar online travel companies have failed in their attempt to block an Alabama court from ruling on whether their retail room rate to transients is subject to hotel occupancy taxes. According to the lawsuit, the online travel companies purchase rooms from hotels at a discounted wholesale rate and then mark them up before selling them to consumers at a higher rate without paying the applicable taxes on the higher consumer charge. Earlier this month, the online travel companies argued that an Alabama judge could not rule on the issue. Today, the Alabama court issued an order denying the online travel companies’ motion and stating that the Alabama municipalities have stated a valid justiciable controversy that must be heard under Alabama law.

Frohsin & Barger represents the City of Birmingham and eight other major Alabama taxing authorities in the matter.

Indictments Returned For Fraudulent Telephone Excise Tax Refund Credits

fraudblawg — Thu, 01 Apr 2010 00:32:48 +0000

The telephone excise tax refund (TETR) credit was a one-time credit in 2006 in standard amounts ranging from $30 to $60 or in the amount of actual excise tax paid (3% of the cost of long distance and bundled service between Feb. 28, 2003, and Aug. 1, 2006). According to an indictment returned today in Baton Rouge, Louisiana, tax preparers filed client returns claiming fraudulent TETR credits in amounts ranging from $1,190 to $7,475. The subjects of the indictment, Cynthia Peters and Melissa Edwards, are employees of Jasmine and Melissa’s Tax Service. They face a combined fine of over $4,000,000 and substantial prison sentences. Both women are presumed innocent and await trial.

To report Major Tax Fraud, contact Frohsin & Barger.

DoJ Sues Orlando Tax Preparer, Seeks Permanent Injunction

fraudblawg — Thu, 25 Mar 2010 16:03:31 +0000

Elisa Veronica Barron allegedly misrepresented “her customers’ filing status and claims non-qualifying individuals as dependents on her customers’ returns” to the tune of over $1,000,000 in unpaid tax liabilities. According to a DoJ Complaint filed today that seeks to permanently bar Barron from preparing tax returns, “Barron ignores or modifies information provided by her customers for the purpose of claiming false or overstated deductions and for claiming tax credits that her customers were not eligible to claim.”

To report Major Tax Fraud, contact Frohsin & Barger.

$15 Million Tax Fraud Scheme Blocked by DoJ Suit

fraudblawg — Wed, 24 Mar 2010 12:05:39 +0000

A father and two sons have “attempted to siphon over $15 million in fraudulent refunds from the U.S. Treasury for customers and for themselves,” a new DoJ suit alleges. The Complaint seeks an injunction against the Huntington Beach California tax preparers and alleges:

“Alexander and Garrett Adams requested two fraudulent refunds for $2.5 million a piece – one for Garrett Adams himself, and the other for a customer. Alexander Adams also requested a bogus refund for himself in the amount of $361,147.”

According to DoJ, such schemes by tax preparers are “part of a growing trend of filing frivolous federal tax returns and forms to steal from the U.S. Treasury.” The Complaint further alleges:

“Alexander and Garrett Adams falsif[ed] Internal Revenue Service (IRS) documents, including IRS 1099-OID Forms with fictitious tax withholdings to claim the bogus refunds. Brandon Adams allegedly seeks new business by promoting the tax fraud scheme through live seminars, Web sites, conference calls, CDs and one-on-one instruction.”

Last week,TaxFraudBlawg reported a similar DoJ injunction action against Jose Lares and an earlier ruling by a federal judge barring another California tax preparation business and its owner Nyla McIntyre.

To report Major Tax Fraud, contact Frohsin & Barger.

Escort Services Turn to Tax Fraud in Salt Lake City

fraudblawg — Wed, 24 Mar 2010 04:10:43 +0000

Husband and wife Jodi and Roy Hoskins were convicted of hiding more than $1.2 million dollars in income on their joint tax returns from the profit of their escort business, Companions. The Hoskins lived a lavish lifestyle off the backs of “call-out escorts” and “phone girls” and defrauded the government out of nearly half a million dollars worth of taxes associated with the business, says DoJ. Jodi Hoskins was convicted by Judge Dee Benson after a non-jury trial. Roy pleaded guilty to tax evasion last year and will be sentenced — of all days — on April 15, 2010.

To report Major Tax Fraud, contact Frohsin & Barger.