Justice Department Sues to Shut Down Alleged WA State Area Tax Scams

The Justice Department announced earlier this week that it has filed a civil suit seeking to stop Raymond Leo Bell, American Beauty Rose, and The Best Way, Inc., all of Yelm, Washington, from promoting fraudulent tax schemes that use sham trusts and other sham entities.

According to the government’s complaint, Bell helps his customers set up sham trusts and corporations that customers use illegally to eliminate or reduce their federal tax liabilities and to evade IRS collection efforts. The complaint also alleges that the defendants advise customers to falsely claim tax-exempt status for their businesses and to fabricate and inflate improper deductions in a fraudulent attempt to evade income and employment taxes.

The government’s complaint seeks to prohibit defendants from selling any type of arrangement that advocates or facilitates tax evasion or non-compliance with the income tax laws. The complaint also seeks an order directing the defendants to notify their customers of the complaint and any injunction entered by the court, and to provide to the Department of Justice the names, mailing and e-mail addresses, phone numbers, and Social Security or employer identification numbers of any customers who had purchased the firms’ products.

“Stopping tax-scam promotions is a high priority for the Justice Department,” said Eileen J. O’Connor, Assistant Attorney General for the Department of Justice’s Tax Division. “In addition to shutting down tax scams, we are committed to identifying those who, by using them, have risked civil penalties and, where appropriate, criminal prosecution.”

You may like these other stories...

Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.