United States Sues Seattle-Area Man to Bar Him from Promoting Alleged “Form 1099-OID” Tax Fraud Scheme
Promoter Allegedly Helped Customers Seek More Than $8 Million in Fraudulent Tax Refunds
WASHINGTON – The United States has sued a Seattle-area man to stop him from promoting an alleged tax fraud scheme, the Justice Department announced today. The government’s civil injunction complaint alleges that John Lloyd Kirk promotes the use of fabricated Internal Revenue Service (IRS) Forms 1099-OID to report fictitious income tax withholding. Kirk’s customers allegedly file federal tax returns claiming huge tax refunds based on the fake withholding.
According to the complaint, Kirk, who resides in Des Moines, Wash., promotes the scheme through his business, the Indian Nations Advocate Law Office. Kirk allegedly holds seminars in the western United States and sells DVDs of his seminars to promote the tax scam. The complaint states that at least 31 of Kirk’s customers have used the scheme to make fraudulent tax refund claims totaling approximately $8 million.
Claiming bogus tax refunds based on false Forms 1099-OID is one of the IRS’s “Dirty Dozen” tax scams for 2011. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax return preparers. Information about these cases is available on the Justice Department website .