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,


Click Here

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.

You may like these other stories...

It's not a reality—yet—but accounting software is poised to eliminate accountants. We are at a tipping point for many similar professions: online education replacing professors, legal software replacing...
Did you know that the tax code allows you to claim tax deductions for household damage caused by thefts, vandalism, fires, floods, hurricanes, and others kinds of casualties? But the law imposes several restrictions.Relief...
Inversions: Loophole Is the ProblemJacob J. Lew, the U.S. Treasury Secretary, published an opinion piece in the Wall Street Journal that "the system has become full of inefficiencies and special-interest loopholes. That...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
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.