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Tax Protestor Dummies > DOJ
Sues Cal Tax Scam Promoter
FOR IMMEDIATE RELEASE
THURSDAY, APRIL 10, 2003
WWW.USDOJ.GOV
|
TAX
(202) 514-2007
TDD (202) 514-1888
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DEPARTMENT OF JUSTICE SUES TO STOP
CALIFORNIA ATTORNEY FROM PROMOTING TAX SCAMS
Attorney Allegedly Falsely Advises Customers They
Do Not Have to Pay Federal Taxes
WASHINGTON, D.C. - The Department of Justice's Tax Division, working with
the U.S. Attorney's Office for the Central District of California, today filed
suit in federal court in Los Angeles to stop California attorney Eduardo Marmolejo
Rivera from promoting several abusive tax scams. Rivera allegedly promotes
three main scams: he sells opinion letters falsely stating that his customers
are not liable for federal income taxes; he represents his customers before
the Internal Revenue Service for the stated purpose of determining their "non-liability" for
all federal taxes; and he sells an "asset protection" service that
he falsely implies can shield his customers' assets from IRS levies.
"Tax scammers enrich themselves by helping others violate the law," said
Eileen J. O'Connor, Assistant Attorney General for the Justice Department's
Tax Division. "The Justice Department will shut down abuses of the public
trust by people who promote tax scams, including those run by licensed professionals."
According to papers filed by the Justice Department, Rivera bases his scams
on the false notion that only federal employees have to pay taxes. He allegedly
directs his customers not to file returns or pay taxes, and tells employers
to stop withholding taxes from their employees' wages. In its suit papers,
the Justice Department states that the IRS is presently unable to estimate
the cost to the Treasury caused by Rivera's activities; court papers note that
the IRS has asserted that six Rivera customers, identified by the agency, owe
more than $9.5 million in taxes, interest and penalties.
Tax scams cost taxpayers billions of dollars every year. According to a General
Accounting Office report (GAO-02-733) issued last year, however, stepped-up
efforts by the IRS and Justice Department to crack down on these scams have
led to increasing numbers of convictions of tax fraud promoters. The report
can be found online at http://www.gao.gov/new.items/d02733.pdf.