Court Permanently Stops Mississippi Professionals and Business from Organizing and Selling “Tax Plans”

The U.S. District Court for the Southern District of Mississippi has issued permanent injunctions against Thomas Walt Dallas, Jason Todd Mardis, and Capital Preservation Services LLC. These injunctions prevent them from making statements about tax benefits for compensation. The defendants agreed to these injunctions.

According to the complaint, Dallas, Mardis, and Capital Preservation Services marketed a fraudulent tax scheme at professional conferences and through media appearances. They targeted medical professionals and small business owners. The scheme advised customers to claim deductions they were not entitled to. The false claims included:

1. Businesses could take deductions for paying large, unnecessary “marketing fees” to fake marketing companies.
2. These marketing companies could employ family members, including minor children, and take deductions for family meals, vehicle expenses, and tuition.
3. Customers could “rent” their homes to their businesses at high rates and avoid paying taxes on the rental income.

The complaint states that Dallas, Mardis, and Capital Preservation Services knew or should have known that their statements about the tax benefits were false. The scheme allegedly caused up to $130 million in lost tax revenue since 2014.

The announcement was made by Deputy Assistant General David A. Hubbert of the Justice Department’s Tax Division.

Every year, the IRS highlights tax scams that put taxpayers at risk of losing money and personal information. The latest IRS list warns taxpayers to be cautious of promoters selling false tax schemes to reduce or avoid taxes.

This article, "Court Permanently Stops Mississippi Professionals and Business from Organizing and Selling “Tax Plans”" was first published on Small Business Trends