WASHINGTON – The United States has asked a federal court to stop an Atlanta-area financial planner from assisting persons in preparing false tax returns claiming fraudulent tax refunds based on fabricated income tax withholdings, the Justice Department announced today. The suit, filed in U.S. District Court in Atlanta, alleges that T. Michael Haney promotes a scheme in which his customers falsely report tax withholdings to generate large bogus refund claims on their tax returns.
According to the government complaint, Haney advises his customers to prepare false Internal Revenue Service (IRS) forms, such as Form 1099-OID, to request fraudulent refunds based on phony claims of large income tax withholding. He allegedly tells his customers that the “OID” program is a little known government benefit. The complaint alleges that Haney’s customers have submitted fraudulent refund claims of more than $3.5 million. Haney allegedly has filed two federal tax returns for himself that falsely claim refunds totaling more than $360,000.
In November 2010, a federal court barred another Atlanta-area man, Robert Knupp , from promoting the OID scheme and preparing federal tax returns.
Claiming bogus refunds based on false Forms1099-OID is identified by the IRS as one of the “Dirty Dozen” tax scams that taxpayers are urged to avoid. Since 2001, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent tax returns. Information about these cases is available on the Justice Department website .