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START WITH THEFT, ADD SPITE, AND...

March 14, 2005

...you might end up with 36 months in federal prison, just like Nathaniel Green. (Not to be mistaken for Nathaniel Greene pictured at left.)

Mr. Green filed a phony trust return claiming a $99,929 refund of taxes he never paid. IRS internal controls broke down and the refund was issued. He stashed the money in somebody else's bank account, so the IRS began to levy his Social Security disability payments and his wifes income from a local church.

Mr. Green found this backdoor recovery of the money he stole vexatious and irksome, so he struck back. His weapon: the mighty form 8300, "Report of Cash Payments Over $10,000 Received in a trade or Business." This form is a "red flag" to help the IRS uncover money laundering. He issued these forms to an IRS agent, to the church bookkeeper who obeyed the levy, and to the church pastor. As the case progressed, the Federal Magistrate Judge and the U.S. Attorney on his case also received forms 8300.

Today's tax tip: if you are a subject of a federal criminal investigation, don't issue phony forms 8300 on your judge; it won't get him in trouble, and it won't win his sympathy.

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