Department of Justice Seal Department of Justice
FOR IMMEDIATE RELEASE
MONDAY, NOVEMBER 22, 2010
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

FEDERAL COURT PERMANENTLY BARS GEORGIA MAN FROM PREPARING FEDERAL TAX RETURNS FOR OTHERS

Marietta, Ga., Tax Preparer Claimed Large Tax Refunds Based on Tax Defier Scheme Involving Phony Claims of Tax Withholding

WASHINGTON - A federal court has permanently barred Robert Knupp of Marietta, Ga., from preparing federal income tax returns for others, the Justice Department announced today. The civil injunction order, signed by Chief Judge Julie E. Carnes of the U.S. District Court for the Northern District of Georgia, found that Knupp promotes a tax defier scheme that claims large fraudulent tax refunds for customers.

The court found that Knupp repeatedly prepared federal income tax returns claiming "huge and fraudulent" refunds for customers, "in amounts sometimes in the millions of dollars," based on a tax fraud scheme known as the "redemption" or "Form 1099-OID" scheme. It further found that Knupp prepared and filed 58 income tax returns for customers in 2009 claiming more than $11 million in fraudulent refunds. The lawsuit against Knupp was one of seven other lawsuits filed across the country in October 2009, all of which sought permanent injunctions against tax preparers who allegedly promote the redemption scheme.

The Internal Revenue Service's (IRS) list of the Dirty Dozen tax scams for 2010 includes schemes involving the filing of false or misleading forms such as false OID forms as used in this case.

John A. DiCicco, Acting Assistant Attorney General for the Justice Department's Tax Division, thanked Brian H. Corcoran, the Justice Department trial attorney who handled the case, and Shauna Henline of the IRS's Small Business Self-Employed Division, who conducted the investigation.

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 returns. Information about these cases is available on the Justice Department website.

Related Documents:

  United States v. Robert Knupp, etc.
Order Granting United States' Motion for Default Permanent Injunction

(PDF document)


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