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IRS sues 31 preparers to stop alleged methane credit scam
April 03, 2009
It's not clear that energy tax credits do anything useful in the energy world, but the Justice Department says they sure promote economic activity:
The United States has sued four Certified Public Accounts (CPA), 27 tax preparers and one other individual, seeking to bar them from promoting an alleged tax scam involving bogus income tax credits claimed for sham sales of methane from landfills, the Justice Department announced today.According to the civil injunction lawsuit, filed in Tampa with the U.S. District Court for the Middle District of Florida, George Calvert of Hernando Beach, Fla., and Gregory Guido of Lithia, Fla., concocted a scheme that involves creating bogus business records purportedly documenting sales of methane from landfills in Puerto Rico, Illinois, New York, Ohio and Connecticut. The suit alleges that there were no methane sales, but that the defendants helped their customers claim tax credits based on the purported sales. Federal law allows an income tax credit with respect to certain sales of fuel from non-conventional sources, including methane produced from landfills.
Most of the preparers are in Texas, but preparers in Illinois, Michigan and Missouri are also named in the suit.
Link: Copy of federal complaint
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Comments
I was scamed by my accountant with this methane credit scam. I can't find a lawyer to go after this guy. What do I do?
Posted by: michael munie | May 5, 2009 6:07 PM