Teresa Marty

[Demosthenes]

email from Sam Davis from Jan. 22.

Yesterday, at about 8:00 am, agents of the IRS/CID and related agencies came to the home and office of enrolled agent Teresa Marty and took all computers, books and records pertaining to 1099's and its related processes. They were there until approximately 3:00 pm in the afternoon. Teresa and her staff are all fine, although somewhat shaken and disconcerted, and would like to ask your support and prayers at this time in the upcoming weeks ahead. They did not "shut down" her business, as she is also a taxpreparer by vocation and did not charge her with wrongdoing. They did say they were conducting a criminal investigation. At this time Teresa and the staff are evaluating the office needs and looking to re-open sometime next week. Please do not call at this time as no one is available to answer the phone or any questions. In the next several days, arrangements will be made to have phone questions handled as well as email. Several people around the country are going to be assisting in this endeavor.
Obviously the question on everyone's mind will be the veracity or truth of the 1099 process, and, in my humble opinion the answer is this: I believe that the process is real and accurate, I believe and Teresa believes that the process is real, accurate and that as a tax preparer for over 20 years, she and her staff prepared the forms correctly and accurately. In the short time that I have had to "check around", i believe with all my heart that she was and is doing the process correctly. The next question is: do we continue to pursue this remedy? Now, this is where the rubber meets the road so to speak. What is your belief system and what does that belief system tell you? How will you handle a similar visit to your door? These are the questions that we all need to ponder here in the next days and weeks ahead.
More updates as they are available.

[Nikki]

Possibly

Teresa Marty, EA, CWPP™, CAPP™
Advanced Financial Services, LLC
243 Placerville Drive
Placerville, CA 95667
(530) 644-5643

Registered member of Asset Protection Society:

-The IRS and state government (if you have a state income tax).The IRS is everyone's number one guaranteed creditor every year. Every year high income clients pay taxes to this creditor. Would you like to pay$15,000, $50,000, 100,000+ less in income taxes this year? Absolutely. Then you should consider using an APS™ rated advisor to look at your personal situation to see if they can help protect you from your number one guaranteed creditor, the IRS.
...
Why offshore? Simply put, to date there has never been a situation where an offshore asset protection trust (OAPT) has been broken and where the money in such a trust has been forced to return to the U.S. and returned to a creditor.
...
Classic quality planning uses a domestic LLC which will own your stocks and mutual funds or other liquid portfolio. That LLC will be owned by the OAPT.
ONLY when and if there is a claim filed against you will the asset be removed from the U.S. and moved to the foreign jurisdiction.

[Judge Roy Bean]

It seems that scammers who are having trouble in the mortgage-elimination, HYIP and FOREX games are branching out. There are also a handful of the promoters of the software packages you use to allegedly manipulate your HELOC into paying off your mortgage in half the time who are reaching out in their 'net marketing channels to push things like the 1099-OID process.

Like I've mentioned before, these things are like the 'whack-a-mole' game.

[notorial dissent]

So she is a tax preparer using the 1099 process, well, I don’t see this ending well. So they just took her computers this time. I would suspect that the next visit, in fairly short order will be with summonses and a restraining order, followed by her clients following her to jail. Not going to be pretty.

And whack a mole is an apt description, or in this case whack an idiot. Everyone that followed this "tax preparer" is going to have so much fun to look forward to, and I wonder what sort of "friv pen" they'll have in their futures, or does the 1099 scam just get you charged with fraud from the start, since it is filing a fraudulent document right off the bat?

The 1099 seems to be the scam du jour that I have been seeing more of lately, and it doesn't seem to sink in that they have moved from just filing fraudulent returns to actually filing fraudulent tax documents, which if I read the new rules aright, moves into the felony classification?

[Nikki]

Preliminary injunction issued:

UNITED STATES OF AMERICA, Plaintiff,
v.
TERESA MARTY, DBA ADVANCED FINANCIAL SERVICES, LLC, Defendant.

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA

ORDER

On July 29, 2009, the magistrate judge filed findings and recommendations herein which were served on the parties and which contained notice that any objections to the findings and recommendations were to be filed within ten court days. On August 6, 2009, defendant filed a "Specific Affidavit of Negative Averment, Opportunity to Cure, and Counterclaim," Dckt. No. 36, and on August 11, 2009, defendant filed a "Request for Mandatory Judicial Notice," Dckt. No. 38, and "Objections to Magistrate Judge Edmund F. Brennan's Findings and Recommendations in the Form of a Writ of Quo Warranto as a Demand for an Interlocutory Declaratory Judgment," Dckt. No. 39. Each of these matters are construed as objections to the magistrate judge's findings and recommendations, and have been duly considered by the undersigned.

This court reviews de novo those portions of the proposed findings of fact to which objection has been made. 28 U.S.C. § 636(b)(1); McDonnell Douglas Corp. v. Commodore Business Machines, 656 F.2d 1309, 1313 (9th Cir. 1981), cert. denied, 455 U.S. 920 (1982). As to any portion of the proposed findings of fact to which no objection has been made, the court assumes its correctness and decides the motions on the applicable law. See Orand v. United States, 602 F.2d 207, 208 (9th Cir. 1979). The magistrate judge's conclusions of law are reviewed de novo. See Britt v. Simi Valley Unified School Dist., 708 F.2d 452, 454 (9th Cir. 1983).

The court has reviewed the applicable legal standards and, good cause appearing, concludes that it is appropriate to adopt the proposed Findings and Recommendations in full. Accordingly, IT IS ORDERED that:

1. The proposed Findings and Recommendations filed July 29, 2009, are ADOPTED;

2. Pursuant to the construction of defendant's filings, Docket Nos. 36, 38, and 39, as objections to the Magistrate Judge's Findings and Recommendations, plaintiff's Motion to Dismiss Counterclaim, Dckt. No. 42, is DENIED as moot, and the hearing on that matter is VACATED;

3. The government's motion for a preliminary injunction is GRANTED and defendant Teresa Marty, individually, and doing business as Advanced Financial Services, LLC, and any person or entity acting directly or indirectly in concert with defendant and/or her business, are enjoined pending the litigation of this action from engaging in any of the following conduct:

a. Acting as a federal tax return preparer; preparing or filing for other persons or entities any federal tax returns, amended returns, or other tax forms; providing any federal tax forms to other persons or entities, and notarizing or signing any federal tax forms, certificates of service or similar documents, on behalf of, or submitted by, other persons or entities; advising any other person or entity concerning federal tax matters; and representing any other person or entity before the IRS.

b. Organizing, promoting or selling any abusive tax shelter, plan or arrangement that advises or assists taxpayers to understate or evade the assessment or collection of their correct federal tax, or is otherwise premised on any deceptive, fraudulent or false representation.

c. Making any deceptive, fraudulent or false claim, including any understatement of liability or reliance on an abusive tax shelter, in her own federal income tax return, amended return or upon any other federal tax form.

4. Defendant Teresa Marty is further required to:

a. Within 45 days of the filing date of this order, provide to counsel for the United States a complete list of all persons and entities who have purchased any tax product, service or advice from defendant within the past three years.

b. Within 45 days of the filing date of this order, send to all persons who have purchased any tax product, service or advice from defendant within the past three years, an executed copy of the court's order with a cover letter agreed to by counsel for the United States; and within 10 days thereafter, defendant shall file with the court a sworn certificate stating that she has complied with this requirement.

c. Within 30 days of the filing date of this order, remove all current content from her websites and replace it with a copy of the Court's preliminary injunction order; and within 10 days thereafter, defendant shall file with the court a sworn certificate stating that she has complied with this requirement.

5. Defendant's request for a stay of these proceedings is denied.

DATED: August 28, 2009.
Frank C. Damrell, Jr.United States District Judge

[Demosthenes]

FOR IMMEDIATE RELEASE TAX
TUESDAY, SEPTEMBER 8, 2009

FEDERAL COURT SHUTS DOWN CALIFORNIA TAX PREPARER

Placerville, Calif. Woman Claimed Over $26 Million in Fraudulent Tax Refund Requests for Customers

WASHINGTON — A federal judge in Sacramento, Calif., has barred Placerville, Calif.-based Teresa Marty and her business, Advanced Financial Services, LLC, from acting as a federal tax return preparer, the Justice Department announced today. U.S. District Court Judge Frank C. Damrell, Jr., of the Eastern District of California entered the preliminary injunction order, which adopted an earlier recommendation of U.S. Magistrate Judge Edmund F. Brennan.

The court found that in 2008 and 2009 Marty prepared and filed fraudulent tax returns with fabricated amounts of federal taxes withheld. According to the court, this false reporting of tax withholding led to fraudulent refund claims in amounts as large as $2.7 million per customer. The court also found that to support those fraudulent refund claims, Marty prepared and filed false IRS1099 forms.

The court stated that the IRS had identified approximately 110 returns that Marty prepared and filed that use false 1099 forms to generate fraudulent refund claims. The court also noted that the scheme Marty employed appeared to be part of a growing trend among tax protesters to file frivolous tax returns and 1099 forms in an attempt to escape their federal tax obligations and to fraudulently obtain money from the U.S. Treasury.

In addition to barring Marty from preparing federal tax returns, the court ordered her to provide to the United States a complete customer list and to notify her customers of the court’s order. More information about the case is available in an earlier Justice Department press release.

In the past decade the Justice Department has obtained injunctions against more than 420 tax preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.

[LaVidaRoja]

Question" Does the IRS have ANY system in place to identify the "victems" (i.e. customers) of these denier-preparers to see if they move to a new one when an old one is shut down?

[Judge Roy Bean]

Question" Does the IRS have ANY system in place to identify the "victems" (i.e. customers) of these denier-preparers to see if they move to a new one when an old one is shut down?

Yes.

The real question is whether they have the resources to pursue the small fish in the giant pond.