FROM TAX PREPARATION AND GIVING TAX ADVICE
To Help Clients Evade Income Taxes and Circumvent Pension-Plan Rules
WASHINGTON – A federal court in San Diego has permanently barred a tax lawyer and his law firm from providing tax advice and from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order against Scott A. Waage, of San Diego, was signed by Judge William Q. Hayes of the U.S. District Court for the Southern District of California. Waage agreed to the injunction without admitting the allegations against him.
The government complaint in the case alleged that Waage, a self-proclaimed “visionary tax attorney,” promoted tax fraud schemes that helped customers evade income taxes through a concept he called “Strategic Integrated Planning.” According to the complaint, one of Waage’s schemes involved creating and using sham consulting corporations (purportedly headquartered in customers’ homes) that did not perform consulting services. Customers funneled funds to the sham companies to pay for and improperly deduct the customers’ personal expenses, the complaint alleged.
The government complaint alleges that the harm to the Treasury as a result of Waage’s schemes exceeded $10.8 million.
Since 2001, the Justice Department’s Tax Division has obtained hundreds injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. More information about these cases is available on the Justice Department website.