This is the latest news clip, if you've had them file your taxes beaware that they are being required to tell who has used their service. IRS, most likely will audit them all.
Judge Curbs Tax Shelter Promoter
A scheme marketed by Oryan Management allegedly cost the Treasury $99 million.
By Kathy M. Kristof
Times Staff Writer
May 8, 2004
A federal judge has barred an Ontario firm and four individuals from preparing tax returns after they engaged in a scheme to sell bogus tax shelters, the Justice Department said Friday.
The scam falsely promised business owners a way to get tax benefits by modifying company websites to comply with the Americans with Disabilities Act, the Justice Department said.
The shelter scheme was organized by a Las Vegas telemarketing firm called National Audit Defense Network, according to a suit filed by the Justice Department last month. Officials blame the scheme for tax revenue losses of $324 million.
The Ontario company, Oryan Management & Financial Services, and the four individuals were accused of promoting the scheme, accounting for $99 million of the losses to the Treasury.
Under the court order handed down last week, Oryan and Daniel W. Porter of Chino, Robert Goetsch of Hayward, Michelle M. Hernandez of Upland and Joseph Prokop of Mt. Baldy must cease tax preparation and cooperate with the Justice Department, including providing names and Social Security numbers for their clients.
Their attorneys did not return phone calls Friday.
According to the Justice Department suit, National Audit Defense Network charged customers $2,495 in cash, plus a $7,980 "promissory note" $10,475 total to make bogus website modifications that it said would enable them to claim about $10,500 in tax credits and deductions.
The government alleges that the promissory note was a sham aimed at boosting the paper cost high enough to get the full benefit of the tax breaks.
The company allegedly told customers that they could use the payments to claim a $5,000 ADA income tax credit and a $5,475 business tax deduction.