FOR IMMEDIATE RELEASE|
WEDNESDAY, OCTOBER 8, 2003
TDD (202) 514-1888
JUSTICE DEPARTMENT SUES OREGON WOMAN TO HALT TAX SCAM
WASHINGTON, D.C. - The Justice Department today announced that it has filed a lawsuit against a Salem, Oregon woman regarding allegations that she promoted a tax evasion scheme known as a “corporation sole.” The lawsuit, filed in the U.S. District Court for the District of Oregon, is part of the Justice Department’s continuing nationwide crackdown against tax-scam promoters who offer fraudulent tax advice.
The complaint specifically alleges Judy Harkins, working with an organization called American Tax Consultants, advised and assisted customers to set up entities known as “corporations sole.” The complaint further states that Harkins fraudulently claimed to her customers that these sham corporations were not required to file tax returns of any kind, as long as they were based on “spiritual principles.”
The complaint also alleges that Harkins and American Tax Consultants falsely told customers they could deduct charitable donations made to their corporations, even though the customers had complete control over the corporations and could use the donations for their own personal benefit.
“Tax-scam promoters hurt their customers - who can expect to pay back taxes, interest and penalties, and even face criminal prosecution for filing false tax returns,” said Eileen J. O'Connor, Assistant Attorney General for the Justice Department’s Tax Division. “These promoters also harm the vast majority of citizens who pay taxes. The Justice Department is committed to shutting down tax evasion schemes.”
The Justice Department has obtained injunctions recently against a number of tax-scam promoters across the nation. More information about these cases is available on the Justice Department website at www.usdoj.gov/tax/taxpress2003.htm.