Hendrickson acolyte shut down

[Demosthenes]

FOR IMMEDIATE RELEASE TAX
MONDAY, MARCH 3, 2008 (202) 514-2007
http://WWW.USDOJ.GOV TDD (202) 514-1888

FEDERAL COURT PERMANENTLY BARS MICHIGAN MAN
FROM PREPARING TAX RETURNS FOR OTHERS
Portage, Michigan Man Prepared Frivolous Tax Returns
Based on Frivolous Argument that Wages are not Income
WASHINGTON - A federal judge in Kalamazoo, Mich., issued an order permanently barring Donald A. Gray from preparing federal income taxes for others, the Justice Department announced today. The court found that Gray has been preparing tax returns for his customers based on the frivolous theory that wages are not income for federal tax purposes. Judge Paul L. Maloney noted that federal courts have “emphatically and repeatedly rejected” this argument.
The court also recalled Gray’s acknowledgment at a March 2007 hearing that the Internal Revenue Service (IRS) has rejected the position that wages are not income, and noted that Gray knew his customers had received letters from the IRS rejecting their tax returns as frivolous.
Besides barring Gray from preparing federal income tax returns for others, the court also ordered that he be barred from counseling others about the preparation of their returns, from holding himself out as a Certified Public Accountant, and from otherwise interfering with the administration and enforcement of the internal revenue laws. The government complaint stated that the IRS estimated that Gray’s harm to the U.S. Treasury was $1.5 million.
“As the court noted, the continuous and repetitive nature of Gray’s conduct is evident from the thousands of tax returns prepared,” said Nathan J. Hochman, Assistant Attorney General of the Justice Department’s Tax Division. “Such extensive fraud will not be tolerated, and such fraudsters will be shut down.”
Since 2001, the Justice Department’s Tax Division has obtained injunctions against more than 305 tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website, as is information about the Justice Department’s Tax Division.
# # #

[Dr. Caligari]

the court also ordered that he be barred from counseling others about the preparation of their returns, from holding himself out as a Certified Public Accountant, and from otherwise interfering with the administration and enforcement of the internal revenue laws.

If he really is a certified public accountant, I think a federal court shouldn't (and arguably, constitutionally cannot) bar him from saying he is. (The federal court should just send its opinion to the state licensing folks, for them to take action on.) The rest of the injunction is just fine, though.

If he isn't a CPA, then enjoining him from saying he is isn't nearly harsh enough; he needs to be referred to the state for criminal prosecution.

[Demosthenes]

From a prior press release.

The court also found that Gray misrepresented his qualifications, falsely claiming to be a Certified Public Account (CPA) even though he is no longer licensed as a CPA in Michigan.

[Demosthenes]

http://www.cheatingfrenzy.com/grayorder.pdf

[Dr. Caligari]

The court also found that Gray misrepresented his qualifications, falsely claiming to be a Certified Public Account (CPA) even though he is no longer licensed as a CPA in Michigan.

In that case, the district court was right to enjoin him from holding himself out as a CPA, and it should send a copy of its opinion to whatever state authority is charged with prosecuting people who fraudulently claim CPA status.

[Famspear]

Dr. Caligari wrote:

In that case, the district court was right to enjoin him from holding himself out as a CPA, and it should send a copy of its opinion to whatever state authority is charged with prosecuting people who fraudulently claim CPA status.

Yeah, under Michigan law, falsely holding oneself out as a CPA is a felony, punishable by up to 5 years in prison and a fine of up to $25,000. See Michigan Compiled Laws, Act 299 of 1980, Article 7, section 339.735 and section 339.723.