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Scam Promoter Enjoined
FOR IMMEDIATE RELEASE
FRIDAY, FEBRUARY 28, 2003
WWW.USDOJ.GOV |
TAX
(202) 514-2007
TDD (202) 514-1888 |
FEDERAL COURT IN TAMPA
ENJOINS TAX SCAM PROMOTER
Florida Man Promoted
a Fraudulent "Section 861" Scheme
WASHINGTON, D.C. – A federal court in Tampa yesterday ordered David
Bosset of Spring Hill, Fla., to stop promoting a fraudulent tax scheme. The
permanent injunction bars Bosset from promoting the frivolous "Section
861"argument (named after the tax code provision it misinterprets). Bosset
had falsely claimed that Section 861 of the Internal Revenue Code exempted
from federal income taxes persons with U.S.-source income. Bosset also must
contact clients and inform them of the injunction.
In the permanent injunction order, the court stated that in promoting the
scheme Bosset made "false or fraudulent statements." The court last
March had entered a preliminary injunction against Bosset.
"People who market fraudulent tax scams are in the business of swindling
the public," said Eileen J. O'Connor, Assistant Attorney General in charge
of the Justice Department's Tax Division.
Information on the preliminary injunction entered against Bossett can be found
online at http://www.usdoj.gov/ opa/ pr/ 2002/ March/ 02_tax_184.htm.
Federal courts have enjoined five other "Section 861" tax scam promoters
in other cases. Press releases concerning these cases are available at the
Justice Department's website at:
http://www.usdoj.gov/ opa/ pr/ 2002/ February/ 02_tax_055.htm,
Don't fall victim to tax scams. Remember that if it sounds
too good to be true, it probably is. If you think you're being scammed, you
can report suspected tax fraud activity by calling
1-800-829-0433.
Some of the common scams the IRS sees include:
Related Items:
Phony Arguments
No matter how some things are sliced, they're still baloney.
If someone tells you that you don't have to pay taxes, check out The
Truth About Frivolous Tax Arguments (PDF 405K) . This IRS.gov exclusive
addresses some of the more common false "legal" arguments made by
those opposed to compliance with the federal tax laws. Each contention is briefly
explained, followed by a discussion of the legal authority that rejects the
contention. The second section deals with frivolous arguments encountered in
collection due process cases. The final section illustrates penalties imposed
on those pursuing frivolous cases.
IR-2003-28 details penalties the Tax Court has imposed from
April 2001 through March 4, 2003, on those using frivolous court cases to delay
IRS collection actions.
Credit Counseling Organizations
The IRS is concerned that some organizations are using their
tax-exempt status to skirt consumer protection laws. Get the details through
this IRS consumer
alert.
Identity and Financial Theft Scam
Be on the alert for a scam that uses phony bank correspondence
and IRS forms to trick unwary bank customers into disclosing their personal
and financial information to the scam promoters. The information is used to
steal the customer's identity and bank account deposits, run up charges on
credit cards, apply for loans, services or benefits in the customer's name,
file fraudulent tax returns and more. The phony IRS forms used in this scam
may be labeled W-9095, W-8BEN or W-8888. News release IR-2002-55 has
more details.
Report instances of this fraud to the Treasury
Inspector General for Tax Administration at
1-800-366-4484.
The Comptroller of the Currency issued Alerts 2002-3 and
2002-6, warning of this identity theft scam and including copies of phony bank
correspondence and the phony W-9095. These are on the 2002
Alerts page of the Comptroller's Web site.
Learn more about identity
theft.