U.S. Bankruptcy Court
District of Nevada
Re: Case 03-17306
I originally purchased a membership with the National Audit Defense Network (NADN) in 1999, as a response to a radio advertisement. This Company offered assistance with Tax Audits. I was at the time being audited for a small miscalculation in a W-2 issue. The NADN required a membership fee to utilize its services. They assigned a former IRS auditor who cleared the W-2 Matter in a small amount of time, with my payment of a small tax penalty.
I continued my business with NADN through the next few years, first allowing this company to prepare my taxes and then by purchasing an American Disabilities Act-compliant Internet website shopping mall that would be developed and managed by a California-based company named, Oryan Management. According to the NADN salesperson, this type of website was allowed by the IRS as a tax credit of $5,400.00 per year reduction of my annual tax liability as long as I kept my NADN dues and website monies current.
The first year of this aspect of my business, (I am a website entrepreneur), I received a joint tax return of approximately $5,400.00. We were very pleased with this amount as well as our decision to continue upgrading our website, until I began crunching numbers. My NADN tax advisor had advised us to change the numbers of exemptions on Form W-4 to as much as nine (9) exemptions. I was advised also that this was a legal means of allowing less tax revenue to be taken from paychecks and that this would allow us to keep this money to spend as we chose. Acting upon this advice, I changed my W-4 to five (5) exemptions that year and upgraded my website for the second year. The tax return for that year was significantly lower than the previous year, somewhere in the area of $1500.00 State and Federal filed jointly. I began questioning NADN representatives as to why this was not going the way they had said the website business benefits would. (Contacting anyone with NADN was and still is a very daunting task). CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.
For Tax Year 2003, another NADN sales person who claimed to be assigned to my account contacted me in January 2003. I was advised that for the usual price I would be receiving my third year upgrade to the website. This price was paid at the time, by credit card. On April 9th, 2003, (please note this date as ), I received a FAX copy of the Oryan contract. This contract recognizes, in contract and in cover letter, that this is the third year upgrade to the website. (I would like to add that each year I upgraded this website, I was paying up front by credit card and promising to pay a promissory note for the remainder within eight years.) I completely paid this debt off by following the NADN's advice in 2003, (approximately $16,000.00).
It was not until mid October 2003 that I noticed that something was not right. I had zero contact with NADN until I began getting correspondence from Oryan, stating that I was now the owner of a new website. I telephoned Oryan to inquire of it when I was told by Oryan that the IRS had decided that the old ShopN2000.com's were NOT ADA compliant for tax credit and that Oryan Management had developed this new MallForAll.com to replace the ShopN2000.com. Upon questioning NADN's salesperson, I was given satisfactory responses when I was able to get through.
In October 2003, I opted to purchase from NADN an Incorporation package and incorporated my entire Online Enterprise, to include the still working www.ShopN2000.com and www.MallForAll.com. In December 2003 and January 2004, I was feeling very confident about my websites business dealings with Oryan and NADN. I elected to purchase two more ADA-compliant websites from NADN and Oryan, in order to have a shopping mall franchise. The salesperson from NADN assured me that NADN and Oryan were still providing these websites as a legal means of lowering my tax liability.
I sent my tax information form provided by NADN's tax preparation department to NADN in February 2004, well ahead of time to allow for any possible amendments or corrections that I would have to submit to NADN. On April 6th, 2004 NADN's tax preparor contacted me to tell me that due to my not signing a contract with Oryan in 2003, I would not get my tax credits as promised AND that I would need to pay the IRS approximately $6700.00 in taxes because I had not withheld enough on our W-4's (my wife exempted 9 exemptions in November 2003 per NADN's advice noted above).
I have been looking into this matter with much concern and have discovered through such different websites as the US Justice Department, the Internet Fraud Complaint Center of the FBI, etc. that the NADN may with the compliance of Oryan have been deceiving and defrauding my company of this considerable amount of money.
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