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SOMETIMES YOU WANT THE IRS TO CATCH UP WITH YOU
October 12, 2006
A few years back a multi-level marketing firm built around tax scamming popped up in Topeka. It's coming to a sad end, as Taxable Talk reports:
Back in 2000, the IRS raided "Renaissance, The Tax People." The company was a multi-level marketing firm specializing in tax. Nothing wrong so far. However, the Department of Justice alleged in 2004 that the company told clients to add non-existant exemptions to their W-4 forms, decreasing the tax the clients had to pay. And it would be just enough money to buy the Renaissance tax package! Additionally, they were accused of having a pyramid scheme.
Michael Cooper, the former head of Renaissance, fled the United States in 2003, but was caught re-entering the U.S. near Laredo, Texas. Mr. Cooper will be tried next year.
Daniel Gleason, the former tax director for Renaissance, pleaded guilty today to defrauding the IRS. He'll face up to five years in prison when sentenced.
Perhaps there was some merit in the Renaissance multi-level marketing approach - they just went straight to the tax scamming, without pretending to sell vitamins, cosmetics or household stuff. Apparently the IRS doesn't award bonus points for being straightforward.
While Mr. Cooper didn't leave the IRS a forwarding address, Kreig Mitchell explains why you should. If you file Form 8822 when you move, the IRS is officially on notice where you live, and if they don't send your notices to your new address, then it's their fault if you don't get them.
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Comments
On the plus side, Cooper proved that border security does manage to catch some people. Perhaps he should have disguised himself as a member of a mariachi band traveling with an elephant.
Posted by: JDFlanagan | October 16, 2006 9:52 AM