As I’ve said on numerous occasions, if it sounds too good to be true it usually is. Still, the gullible keep flocking to the schemes that cause income to magically disappear.
Steven Allen, an attorney, and Allen Goodmansen, a CPA, are both from Mesa, Arizona (suburban Phoenix). They came up with a clever (but illegal) method of making income disappear: a triple-trust. As best as I can tell from the Department of Justice press release, this foreign trust had not one, not two, but three layers of fun to separate their clients from their tax obligations. The foreign trusts cost between $10,000 and $30,000 to set up (plus annual maintenance fees).
Unfortunately for Mr. Allen and Mr. Goodmansen, one of their prospective clients was an undercover IRS agent. Mr. Goodmansen even had the tax returns mailed from outside of the US, but in the end the jig was up.
They’ll both have plenty of time at ClubFed to think over their transgressions. Mr. Allen received 46 months and Mr. Goodmansen received 18 months.
If someone offers you a single trust that makes your income disappear, don’t bite. If you hear of a double trust, it’s even worse. And if you’re offered a triple trust you’re only looking at triple trouble.