Federal Court Bars Florida Man from Promoting Alleged “Form 1099-OID” Tax Fraud Scheme
Refunds Totaling $1.2 Million Issued As Result of Scheme
WASHINGTON – A federal court in Ft. Meyers, Fla., has barred Gregory Boone of Riverview, Fla., from promoting an alleged tax fraud scheme, the Justice Department announced today. Boone consented to the civil injunction order without admitting the allegations against him.
The government complaint alleged that Boone, who allegedly uses the business names Provident Holdings International LLC and PHI LLC, promoted an abusive tax scheme in which he filed false Internal Revenue Service (IRS) Forms1099-OID to assist his customers in submitting federal income tax returns containing false claims for tax refunds. The complaint further alleged that Boone filed nearly 5,000 false tax forms and that the IRS issued at least eight erroneous refunds totaling $1.2 million. The court’s order bars Boone from preparing tax forms for others and requires him to provide his customers with a copy of the injunction order.
Claiming bogus tax refunds based on false Forms 1099-OID is one of the IRS’s “Dirty Dozen” tax scams for 2011. The Justice Department recently announced the filing of criminal charges against a resident of Lauderhill, Fla., in connection with her alleged participation in a fraudulent tax refund scheme involving false Forms 1099-OID.
In the past decade, 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.