More False Forms 1099-OID

[LPC]

With a lame justification based on "redemption."

So it's not really fraud, I guess.

UNITED STATES FILES SUIT TO STOP VIRGINIA MAN
FROM PROMOTING TAX FRAUD SCHEME

Promoter's Customers Allegedly Filed More Than $67 Million
in False Refund Claims

November 9, 2012

WASHINGTON -- The United States has sued Charles Sewell of Bristol, Va., to bar him from promoting an alleged scheme involving fraudulent tax refund claims, the Justice Department announced today.

According to the government's amended complaint, Sewell creates fraudulent types of Internal Revenue Service (IRS) Forms 1099 for other taxpayers and files them with the IRS. The fraudulent types of Forms 1099 are allegedly designed to help Sewell's customers request large tax refunds to which they are not entitled, based on false claims of income earned and federal tax withheld. The complaint alleges that Sewell's scheme is based on the "commercial redemption" theory, in which individuals make refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS. The lawsuit alleges that Sewell's customers sought $67 million in bogus refunds as a result of Sewell's conduct.

Claiming bogus tax refunds based on false Forms 1099-OID is one of the IRS's "Dirty Dozen" tax scams for 2012. In the past decade, the Justice Department's Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website.

[Judge Roy Bean]

It's still amazing to me that our army of dedicated news media producers haven't seen fit to assign a team to bring this kind of thing into the light as a story - one that could help put a stop to it.

There are firms on K Street that could make that happen - and it wouldn't cost $67M.

[Number Six]

It's still amazing to me that our army of dedicated news media producers haven't seen fit to assign a team to bring this kind of thing into the light as a story - one that could help put a stop to it.

There are firms on K Street that could make that happen - and it wouldn't cost $67M.

And the question is why they are not covering issues like this, such as tax reform, and making government efficient and countering the libertarian position that government doesn't work? Most of the talking heads I see on CNN and the other news programs have lost their edge a long time ago and are presenting entertainment in the guise of "news". Last night I watched an interview of the Iran head by Mr. Morgan where he spent a great deal of the interview focussing on rights of gay people and women who want to go skiing in his country unescorted!The LBGT group has been proven to be under 4%, and that is a huge issue?

These journalists must have learned something in college, but unfortunately they may lose market share if they went back to core principles and cutting edge journalism. BTW Amy Goodman and "Democracy Now" is almost always relevant and cutting edge on issues.

[AndyK]

It's still amazing to me that our army of dedicated news media producers haven't seen fit to assign a team to bring this kind of thing into the light as a story - one that could help put a stop to it.

There are firms on K Street that could make that happen - and it wouldn't cost $67M.

Is the esteemed reporter from New Hampshire who covered the E&E case still around? Although this isn't on her turf, it could bring about national recognition.