Category Archives: Tax Fraud

More than a Pinch of Fraud

Posted on August 12, 2007 by Russ

While I’ve been gone for the last two weeks, I collected many stories about tax fraud. Here are just a few of them (if I included all of them, it would fill many pages of this blog). Two members of … Continue reading →

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Not a Good Week for Bozo Tax Preparers

Posted on August 12, 2007 by Russ

There are good tax preparers, bad tax preparers, and bozo tax preparers. There have been two recent stories about the latter group—tax preparers, please don’t copy their methods. >From San Jose, California, comes the story of Melinda Newens. The former … Continue reading →

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Why Trust Fund Tax Fraud is Bad

Posted on July 24, 2007 by Russ

We received an email regarding the post we did on Ace Tire & Parts. The owners of Ace are accused of violating federal employment laws and have each pleaded guilty to one count of tax fraud. In any case, we … Continue reading →

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A Bozo Scheme Fails

Posted on July 20, 2007 by Russ

Please don’t try this yourselves. You have a successful business (in this case, Ace Tire & Parts of Coraoplis, Pennsylvania). You decide that you don’t have to pay payroll taxes; instead, you’ll make your employees checks payable to “Cash” and … Continue reading →

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A Graduate of Western Tax Service?

Posted on July 19, 2007 by Russ

The Western Tax Service method of preparing tax returns is different. Customers love the high refunds. Of course, the deductions claimed on Schedule A were almost all either false or overinflated. Did I mention that Western’s proprietor is at ClubFed … Continue reading →

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Another Offshore Scheme Down the Drain

Posted on July 15, 2007 by Russ

I’ve been saying for some time that offshore trusts and bank accounts set up with no purpose at all (except to avoid US income taxes) are definitely in the cross-hairs of the IRS. Another user of this scheme will be … Continue reading →

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It Is Difficult to Overemphasize the Breadth and Depth of the Corruption

Posted on July 15, 2007 by Russ

The title of this post is a quote from the 11th Circuit Court of Appeals. Former Atlanta Mayor Bill Campbell had appealed his conviction and his sentence on tax fraud charges. The Appeals Court found his conviction and sentence to … Continue reading →

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What’s the ClubFed Party Scene Like?

Posted on July 5, 2007 by Russ

That’s probably one of the thoughts going through Timothy Heffner’s mind right now. Mr. Heffner, of Pittsburgh, pleaded guilty to fraud, conspiracy and tax evasion charges on Tuesday. Mr. Heffner, according to the story in the Pittsburgh Post-Gazette, “entertained on … Continue reading →

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Off the Deep End

Posted on July 1, 2007 by Russ

Now that it’s summer, you may be considering a trip to the pool. Swimming is a great summer activity, but you do have to be careful when you dive into a pool. One diving coach jumped into some hot water … Continue reading →

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Another Offshore Scheme Goes Down the Drain

Posted on July 1, 2007 by Russ

I’m not a big drinker. The former President and co-owner of Domecq Importers will have 10 years at ClubFed of being a teetotaler after pleading guilty to fraud and tax fraud charges. Domecq Importers was a large liquor importer based … Continue reading →

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