Federal Court Stops Ohio Tax Promotions

The Justice Department announced on Wednesday that a federal court in Akron has entered an order barring James Binge and Terrence Bentivegna from promoting abusive tax schemes and preparing federal tax returns for others.

Judge John R. Adams of the U.S. District Court for the Northern District of Ohio found that Binge and Bentivegna, who are from the Canton, Ohio area, sold sham trusts and prepared income tax returns for customers that hid income and claimed improper deductions. The court also found that the pair promoted a scheme that falsely asserts that customers need not report income earned within the United States. The court said that the two men “knew or should have known” that their statements to customers about their schemes were false. The court noted that the IRS estimated that the pair’s activities have cost the U.S. Treasury $18.9 million.


Click Here

The preliminary injunction order bars the two men from selling fraudulent tax schemes, preparing federal income tax returns for customers, and representing customers before the IRS. Binge and Bentivegna also were ordered to mail a copy of the order to each customer and to give the Justice Department a list with their customers’ names, addresses, phone numbers, e-mail addresses and Social Security or employer identification numbers.

“Case by case, we are stopping the fraudulent activities of scammers, who cheat all law-abiding taxpayers by promoting fraudulent tax schemes,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “We are also methodically identifying the scammers’ customers, who will not only have to pay their back tax liabilities, but can expect civil penalties and, where appropriate, criminal prosecution.”

You may like these other stories...

Camp Hopes Estate Tax Will Be on Its Way OutAn article in Bloomberg said that Republicans are considering voting this year to repeal the U.S. estate tax, according to House Ways and Means Chairman Dave Camp (R.-Mich.). He...
Senate Takes Different Approach from House for Highway and Bridge FundEarlier this week, according to a New York Times article, the Senate agreed to fill the coffers of the fund that pays for highway and bridge repairs with...
There it stands, your client's 100-year-old, rickety, vermin-infested barn or former hotel or whatever the darn thing once was. And she's considering what to do with it. There are two words that can help her decide...

Upcoming CPE Webinars

Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.