Justice Department Sues To Block North Carolina Man From Promoting Tax Scam
Dallas, N.C., Resident Allegedly Sells Fraudulent "Corporation Sole" Program
WASHINGTON - The United States has sued a North Carolina man to prevent him from selling an alleged tax fraud scheme, the Justice Department announced today. The government complaint alleges that Andrew DeDominicis (formerly known as Andrew Brown) of Dallas, N.C., promotes the formation and use of a "corporation sole" to help his customers improperly avoid paying federal income taxes. The suit asks the court to bar DeDominicis from continuing his promotion and to order him to provide a list of his customers' names, addresses, e-mail addresses, telephone numbers and Social Security numbers to the Justice Department.
According to the complaint, some states authorize an entity known as a corporation sole to enable religious leaders to hold property and conduct business for the benefit of a legitimate religious entity. DeDominicis allegedly helps his customers set up corporations sole through a Shelby, N.C.-based organization called Impact Ministries International (IMI). He allegedly claims that he is a minister, but the government alleges that IMI operates as a for-profit enterprise and not as a legitimate church or ministry. The complaint states that DeDominicis falsely informs his customers that their corporations sole will be treated as churches and will not need to file federal income tax returns.
According to the complaint, more than 160 people in 34 states have formed corporations sole with DeDominicis's assistance, with many paying him as much as $2,500 for his services. The complaint describes DeDominicis telling specific customers how to use their corporations sole to operate businesses without filing tax returns and how to deduct contributions to their corporations sole improperly as charitable donations.
In the past decade, the Justice Department's Tax Division has obtained hundreds of injunctions to stop the promotion of tax fraud schemes like corporations sole. Details of these cases are available on the Justice Department website.