I’ve seen returns requesting large tax refunds, but I haven’t personally seen one requesting $2.5 million. However, that’s what Alexander Adams and his son Garrett, of nearby Huntington Beach, requested from the IRS. There’s just a few problems with the request, at least according to a complaint filed against the Adamses and Alexander’s other son, Brandon:
“The defendants prepared federal income tax returns claiming massive fraudulent tax refunds based on fabricated income tax withholdings.” Well, the total of their requests allegedly included Garrett’s of $2.5 million, a customer’s $2.5 million, and Alexander’s $361,000 and, in total, added up to $15 million.
That’s a lot of tax, especially when it’s all allegedly phony. The Adamses are a target of a US Department of Justice lawsuit and face possible civil penalties of 20% of the amount of their claims ($3 million) plus being barred from the tax preparation industry. Mr. Adams is accused by the DOJ of promoting his scheme through seminars and web presentations.