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It can't hurt to ask, can it?

September 14, 2009

The lottery ads say "you can't win if you don't play." A recently-released federal prisoner took the same approach with the tax law, filing a return requesting a refund of over $9 million. All they can do is say "no", right? Well, not exactly:

Jeffrey H. Sloman, Acting United States Attorney for the Southern District of Florida, and Daniel W. Auer, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, announced that defendant Marlon T. Moore, a/k/a Dammon Green, a/k/a Tyrone Moore, a/k/a X-Large Moore, 38, of Miami, FL, pled guilty today to one count of filing a false claim with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287. At sentencing, Moore faces a maximum statutory penalty of up to five years’ imprisonment. Sentencing is scheduled for November 18, 2009 at 2:00 p.m. in Miami, FL, before U. S. District Judge Marcia G. Cooke.

According to the charges and statements made in court during the plea hearing, Moore was released as an inmate from the Federal Correctional Complex in Coleman, FL, on December 28, 2007. After his release, Moore filed a 2007 U.S. Individual Tax Return, Form 1040, and requested a fraudulent refund of $9,087,987.95 from the IRS. During 2008, Moore filed several other fraudulent U.S. Individual Income Tax Returns requesting refunds to which he was not entitled. The tax loss is the amount Moore sought as a refund, $9,087,987.95.

The genius of the scheme was to ask for the extra 95 cents. If he'd have used round numbers the IRS might have noticed.

While regular lottery losers are only out their $1, Mr. X-Large looks to lose up to five years for playing the audit lottery.