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example of tax fraud

On March 17, 2012 The Los Angeles Times reported on a case of Tax fraud where a man was convicted and facesĀ up to 65 years in prison.

As we head into the final days before our tax filing deadline I want to remind people of the risks of tax fraud.

1099 OID Tax Fraud Committed by Tax Preparer

An Orange County man who exploited a common tax myth and scored $14 million in illegal refunds for his clients was convicted recently of conspiracy and wire fraud.

Ronald L. Brekke, 55, helped prepare phony tax forms for nearly 1,000 people, most of them Canadians, that claimed more than $763 million in fraudulent refunds from the IRS, prosecutors said. Most of the false claims were caught by tax officials before they went through, but about 2% of them resulted in refunds being paid out.

After a two-day trial, a jury in federal court in Seattle deliberated for two hours before returning a guilty verdict. Brekke will face up to 65 years in prison when he is sentenced June 15.

Prosecutors said Brekke promoted what is known as a 1099 OID fraud, which, according to the Internal Revenue Service, is one of the most common schemes pulled during tax season.

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12 Responses to As IRS Tax Deadline Looms, Don’t be Tempted by Tax Fraud

  1. GPT says:

    As tax our deadline looms we were tempted by tax fraud and it would have been so easy to not report $9000.

  2. Felicia Kampar says:

    No tax deadline looms for people who pay their fair share.

  3. Deban says:

    As tax deadline looms, don't be tempted by tax fraud or you will pay with money, time and fines.

  4. Ophelia Rendon says:

    As our tax deadline was extended, we tried to have our CPA use a motorhome as a deduction.

  5. Phillip says:

    As tax deadline looms, we had to empty our bank account. don't be tempted by tax fraud like we were.

  6. Allison UA says:

    1099 OID Tax Fraud Using Improper Tax Law To Claim Unearned IRS Refunds – fraudsters beware, you will end up like Al Capone.

  7. Pavel Mann says:

    US citizens involved in 1099 OID Tax Fraud Using Improper Tax Law To Claim Unearned IRS Refunds are idiots.

  8. san jose says:

    Will a 1099 OID Tax Fraud show up on our tax return if a relative used this To Claim Unearned IRS Refunds?

  9. Marvel says:

    As tax deadline looms, don't be tempted by tax fraud like we did and had to pay $450k in penalties.

  10. Vergleich says:

    As tax deadline looms, don't be tempted by tax fraud like we were.

  11. Christian Baled says:

    If you file a 1099 and use OID with Improper income declarations, claiming Unearned IRS Refunds is fraud and a federal crime.

  12. [...] In order to file all these 1099s, a person will need to collect the necessary information from all your service providers. In order to comply with the law, you must get a Taxpayer Information Number or TIN from the business. If the vendor does not supply you with a TIN, you are obligated to withhold on your payments to avoid improper 1099 filings. [...]

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