As they say on the TV show American Greed ……”wanna know more?” Well, here’s a few more of the top IRS cases of 2021 that would fill a few more episodes. Orlando sisters in a $25 million tax fraud scheme, a Russian Bank founder evading tax upon renouncing his U.S. citizenship and an ex-pastor in a $33 million con.
The Orlando sisters set up more than five different tax preparation companies and filed more than 16,000 false tax returns resulting in nearly $25 million in fraudulent tax refunds. In addition to their prison sentences, the court ordered them to pay back the entire amount in restitution in addition to more than $500K for tax evasion.
A globetrotting Russian born individual named Oleg Tinkov, who became a US citizen in 1996, founded a banking company (Tinkov Credit Services) that later held an initial public offering (IPO) in London that made him a billionaire. Three days later he went to the U.S. Embassy in Moscow and relinquished his U.S. citizenship. But Tinkov lied on forms filed as part of his expatriation in addition to false income tax reporting in effort to save hundreds of millions. The IRS, UK and international investigators eventually uncovered the fraud.
A former pastor of the Church of the Healthy Self was only looking out for his own financial health in an investment scam. Making false statements at live seminars and in television appearances, the money poured in but very little went into investor trading accounts. The IRS, FBI and SEC worked together to put an end to this con.
Want to know more? Go to the IRS website and enter the search IR-2022-04. If you’re worried about being on the next edition of Top Tax Court Cases and you have a tax law question, contact your Henry+Horne advisor.
Dale Jensen, CPA