FOR IMMEDIATE RELEASE |
WEDNESDAY, JANUARY 28, 2004
TDD (202) 514-1888
FEDERAL COURT ORDERS HALT OF PARTNERSHIP TAX SCAM
Texas Couple Barred from Preparing Tax Returns and Advising Customers
to Hide Income and Assets in Sham Partnerships
WASHINGTON, D.C. - The Justice Department today announced that a federal court has barred Daniel Fisher, Brenda Meyers Fisher and their businesses - EOTL Systems, Inc. and Tax Dynamix - from preparing federal tax returns for customers and promoting a tax evasion scheme that court papers allege was targeted at wealthy married couples.
The order, entered on January 26, 2004 by Judge A. Joe Fish of the U.S. District Court for the Northern District of Texas, requires the defendants to notify their customers in writing of the court order. The order also requires the defendants to give the Justice Department a list of the names, addresses and social security numbers of all customers who purchased the scheme, and bars Daniel Fisher from representing customers before the Internal Revenue Service (IRS).
The court order, entered by default, found that the defendants illegally advise their customers to conceal income and assets in sham partnerships, to claim improper tax deductions and to stop paying federal employment taxes. The court also found that the Fishers and their associates have prepared hundreds of fraudulent tax returns, sham partnership agreements, as well as fraudulent IRS W 2 and 1099 forms. Papers filed in the case state that the IRS estimates that the Fishers are responsible for more than $5 million in tax losses to the U.S. Treasury.
"Injunctions against tax scam promoters are a victory for all law abiding citizens," said Eileen J. O'Connor, Assistant Attorney General for the Justice Department's Tax Division. "People should not be fooled by unscrupulous promoters who promise to eliminate federal income tax liabilities by engaging in sham transactions."
More information about this case is available on the Justice Department's website at www.usdoj.gov/tax/txdv03511.htm. The suit is part of the Justice Department's continuing nationwide effort to combat tax scam promoters. More information regarding these cases is available at www.usdoj.gov/tax/taxpress2004.htm.
More information about the Justice Department's Tax Division can be found at www.usdoj.gov/tax.