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Tax Protestor Dummies > Home-Based
Tax Scam
FOR IMMEDIATE RELEASE
THURSDAY, APRIL 10, 2003
WWW.USDOJ.GOV |
TAX
(202) 514-2007
TDD (202) 514-1888 |
JUSTICE DEPARTMENT SUES TO STOP
HOME-BASED BUSINESS TAX SCAM
Tennessee Man Allegedly Marketed the Scam by Falsely Claiming to Be a Lawyer
WASHINGTON, D.C. – The Justice Department filed suit in federal court
in the Middle District of Tennessee today to stop Daniel J. Gleason of Franklin,
Tenn., from promoting a tax scam based on the use of bogus, home-based businesses
to claim deductions for non-deductible personal expenses. According to papers
filed by the Justice Department, Gleason falsely advises customers that, by
using his “Tax Toolbox” system to set up a business out of the
home, they can automatically deduct personal expenses, including expenses for
travel, commuting, vacations, meals, golf outings, weddings, college education,
all medical care, children’s allowances and other items.
“The law does not permit taxpayers to deduct personal expenses because
they conduct businesses based in the home,” said Eileen J. O’Connor,
Assistant Attorney General in charge of the Justice Department’s Tax
Division. “The Justice Department will take the steps necessary to shut
down tax scam promoters who falsely promise taxpayers that they can write off
personal expenses in this way.”
Gleason allegedly fails to tell customers that, in order to deduct expenses
for a home-based business, a taxpayer must show an actual and honest profit
objective and that, even then, only business-related expenses are deductible.
He allegedly markets the scam by falsely claiming to be a lawyer with a “doctorate
in tax law.”
According to Justice Department papers, the Internal Revenue Service estimates
that Gleason’s scam costs the Treasury over $3 million per year. The
agency has recently identified the home-based business scam as one of the “Dirty
Dozen” that it has specifically urged taxpayers to avoid. The whole list
can be found at: http://www.irs.gov/newsroom/
article/ 0,,id=107493,00.html.
Tax scams cost taxpayers billions of dollars every year. According to a General
Accounting Office report (GAO02733) issued last year, however, steppedup
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.
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