Texas TP Phillip Ballard shut down

[Demosthenes]

FOR IMMEDIATE RELEASE
TAX
WEDNESDAY, FEBRUARY 13, 2008

DALLAS AREA MAN BARRED BY COURT FROM OPERATING TAX SERVICE
Prepared Federal Income Tax Returns Falsely Showing No Income
WASHINGTON – A federal court in Dallas has permanently barred Arlington, Texas, businessman Phillip M. Ballard from preparing federal income tax returns for anyone other than himself, the Justice Department announced today. U.S. District Court Judge Jorge A. Solis issued the civil injunction order, which also bars Ballard from representing customers before the Internal Revenue Service (IRS).

The court found that Ballard, whose business is called Asset & IRS Shield, Inc., illegally prepared federal income tax returns for customers that falsely showed nothing but zeros on most if not all lines. The “zero return” scheme has been on past IRS annual lists of the Dirty Dozen tax scams. A notorious tax resister who promoted the zero-return scheme, Irwin Schiff, is currently serving a prison sentence following his criminal conviction for promoting the scam.

The court’s order also requires Ballard to notify his customers of the injunction and prohibits him from advertising tax return preparation services on his Web site.

Since 2001, the Justice Department’s Tax Division has obtained more than 310 injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department website, as is information about the Justice Department’s Tax Division.

[hartley]

sigh...

Shouldn't the zero-return scheme dry up soon?

With the IRS publishing it on the list of top fraud schemes, and with Schiff in jail for probably the rest of his life, haven't they figured out yet that it's a zero-sum game?

Sorry, I had to.

[jkeeb]

I wonder how much he charged to put zeros on a tax return. You would think that he would not have much return business (not counting people who the IRS fined) as the customers could do that themselves.

[hartley]

I wonder how much he charged to put zeros on a tax return. You would think that he would not have much return business (not counting people who the IRS fined) as the customers could do that themselves.

I didn't even think of that angle. And, was it a flat fee, or a percentage of their refund?

[Demosthenes]

Irwin and Cindy charged a flat fee to enter zero on every line.

[Quixote]

I wonder how much he charged to put zeros on a tax return. You would think that he would not have much return business (not counting people who the IRS fined) as the customers could do that themselves.

Some jobs require a professional's touch.

On a completely unrelated matter, iirc, 15% of H&R Block's business is completing the 1040EZ, a form with 6 lines.

[jkeeb]

I am currently working for a refund mill. Most of the returns I have done (am at 75 right now) could have been done on a 1040EZ.

But, when I look around at the signage, we really are not offering "tax expertise". The place sells quick money. And that is why the customers go. It is to get the refund today or tomorrow, not next week.

[webhick]

I wonder how much he charged to put zeros on a tax return. You would think that he would not have much return business (not counting people who the IRS fined) as the customers could do that themselves.

Some jobs require a professional's touch.

On a completely unrelated matter, iirc, 15% of H&R Block's business is completing the 1040EZ, a form with 6 lines.

And, they charge $110 to do it, too. I guess that's not too bad, considering a local accountant is charging $300 for a 1040EZ.