Court Halts Nationwide Tax Promotion

The Justice Department recently announced that a federal court has ordered a Palmdale, California man to stop promoting two nationwide tax scams. The preliminary injunction entered by Judge Florence-Marie Cooper of the U.S. District Court for the Central District of California orders Joseph O. Saladino and his organization,


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Freedom & Privacy Committee, to stop promoting two schemes known as the “corporation sole” and “claim of right” programs.

According to court filings, Saladino falsely advised prospective customers that the corporation sole program could exempt them from income taxation if they transferred their income and assets to an entity known as a corporation sole and claimed that it was a tax-exempt church. In the claim of right program, it is alleged that Saladino falsely told customers that compensation for their labor is not taxable and that they could therefore get refunds of past taxes paid.

"This court order is another step forward in the battle against tax swindlers," said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. "The Justice Department and the IRS are working vigorously to put promoters of fraudulent tax scams out of business."

The court’s order also requires Saladino to notify his customers of the injunction and to remove from his website promotional materials about the banned promotions. He is also to post a copy of the injunction order on his website.

Separate government suits against other alleged promoters of Saladino’s programs are pending in several courts around the country.

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