Tax Resolutions, Inc., perpetrators indicted

Practical and Practice issues for Professionals who practice in the area of taxation. Moral, social and economic issues relating to taxes, including international issues, the U.S. Internal Revenue Code, state tax issues, etc. Not for "tax protestor" issues, which should be posted in the "tax protestor" forum above. The advice or opinion given herein should not be relied on for any purpose whatsoever. Also examines cookie-cutter deals that have no economic substance but exist only to generate losses, as marketed by everybody from solo practitioner tax lawyers to the major accounting firms.
Judge Roy Bean
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Tax Resolutions, Inc., perpetrators indicted

Post by Judge Roy Bean » Sun Mar 14, 2010 4:21 am

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Re: Tax Resolutions, Inc., perpetrators indicted

Post by The Observer » Sun Mar 14, 2010 3:59 pm

Sadly, not the first time that "professional" tax representation firms have sought to undermine the system and bribed IRS employees to go along wth the crime. There was an incident in California where a enrolled agent peddling offers to taxpayers realized that he could get a better reputation among future clientele if he could make it seem that the IRS actually accepted their offers. Up to this point he had been advertising offers as the "10 cent on the dollar" program but his clients were getting frustrated with the little fact that the fees he was charging were not resulting in offers being accepted.

During his interactions with the IRS, he had gotten friendly with a female IRS employee, which started becoming romantic. Eventually he convinced her to get involved in this scheme: she would get his clients' tax cases assigned to her, he would get those taxpayers to submit an offer; the IRS employee would report the cases as being not collectible, being that the offers would have never been acceptable in the first place. The enrolled agent would report to the clients that the IRS had accepted their offer and that they would never hear from the IRS again.

One small problem with this scheme was that the enrolled agent had another girlfriend who was privy to the business side of his operations. When she became aware of his romantic interludes with the IRS employee, she went straight to the IRS and laid out the scenario.

End result was federal time for both the enrolled agent and the IRS employee.
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