FOR IMMEDIATE RELEASE|
TUESDAY, JUNE 11, 2002
TDD (202) 514-1888
FEDERAL COURT IN TAMPA ORDERS FORMER ACCOUNTANT
Marks Third Injunction Entered Against "Section 861" Scheme
WASHINGTON, D.C.– The Department of Justice announced today that a federal court in Tampa, Fla. yesterday barred former accountant Douglas P. Rosile, Sr. from preparing federal tax returns. In addition, the court ordered him to turn over to the Department either a complete list of his federal tax return clients or copies of the returns.
Among the documents the government submitted in support of its request for this injunction were copies of some tax returns Rosile prepared, including one that claimed a bogus $7.3 million refund.
The court order also prohibits the Venice, Fla. man from promoting a tax evasion scheme called the "Section 861" argument. This argument falsely claims that only income from foreign sources is taxable.
In the preliminary injunction, the court in Tampa said that, "The public is served by granting this injunction...[I]t will help to stem the spread of the frivolous Sec. 861 argument. Rosile's clients will be protected from Rosile's fraudulent scheme and from the tax penalties resulting from participation in the frivolous scheme."
"This injunction is a victory for honest taxpayers," said Eileen J. O'Connor, Assistant Attorney General for the Department of Justice's Tax Division. "The so-called 861 argument is just one way scam artists cheat on their own taxes and encourage others to do so. The Justice Department will continue to take the steps necessary to stop this and other varieties of tax fraud, which cost U.S. taxpayers billions of dollars each year."
Rosile is the third promoter enjoined this year for promoting the Section 861 argument. The Justice Department obtained a preliminary injunction in March against David Bosset of Clearwater, Fla. and a permanent injunction in January against Harold Hearn of Atlanta.
Fraudulent tax schemes cost the United States Treasury billions of dollars a year. But, according to a report the General Accounting Office issue in May, IRS efforts have led to increasing numbers of convictions for promoters and individuals involved in abusive schemes.