Department of Justice Attempts to Thwart Tax Evasion

The U.S. Department has filed documents in Federal District court in Tampa in an attempt to gain an injunction against tax fraud monger Douglas P. Rosile Sr. of Venice, FL, who has been accused of peddling tax scams.

Tax scams take many shapes, and since Congress passed the I.R.S. Reform and Restructuring Act in 1998 there has been an influx of tax scam opportunists attempting to take advantage of an unsuspecting and willing public. Designed to protect taxpayers from over-zealous tax agents, the law also provides a shield against prosecution for those who sell tax-evasion programs.

One popular scam is the tax slavery reparations scam, in which African American taxpayers are encouraged to claim a tax credit for amounts supposedly owed by the federal government to their ancestors. Other scams include claims that taxes are voluntary and thus not required to be paid, and that only foreign-owned corporations are taxable.

The I.R.S. estimates that at least 152,000 tax returns were filed last year in which Americans claimed they owed no taxes or were entitled to a refund based on bogus tax scams.

Included in the court papers is information that actor Wesley Snipes is one of those taxpayers who attempted to take advantage of a tax scam on his income tax return. Documents filed with the court include Mr. Snipes's amended 1997 income tax return which was prepared by Mr. Rosile. The amended return shows a reduction to zero of the original $19.3 million in income reported by Mr. Snipes and a request for a $7.4 million refund. The reason shown on the return for the change in income is that Mr. Snipes did not owe taxes because he did not work for foreign companies.

I.R.S. manager Rae Ann Thurell who regularly works with tax scams claimed on tax returns noted that the business of dealing with the bogus returns "places a severe administrative burden on the I.R.S."

You may like these other stories...

Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...
With tomorrow being Tax Day, you might see some procrastinators at your office filling out forms, printing out paperwork, or getting last-minute tax advice from their accountant so they can meet the IRS’s filing...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.