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Misadventures in business deductions

October 19, 2009

Claiming imaginary business deductions is a great way to lower the taxes shown on client tax return, except for the going to prison part. Oh, and the part about all the clients getting audited and paying the taxes and penalties.

Kansas City preparer Donald Biusnell last week received a three-year sentence after pleading guilty to cutting taxes by $1.1 million for clients with phony deductions.

A Topeka-based multi-level-marketing version of this ploy called "Renaissance -- The Tax People" blew up a few years ago. Not long ago a former IRS district director who served on the operation's "dream team" of tax advisors received a two-year sentence. Now Todd Strand, former National Marketing Director at RTTP, has received a 51-month sentence. Russ Fox has more.