A federal court has permanently barred a Tacoma, Wash., woman from selling a tax scam, according to the Justice Department.
The court found that Sharon Kukhahn's "IMF Decoder" scheme falsely purported to "decode" Internal Revenue Service computer transcripts of customers' taxpayer accounts to show that the customers were not liable for paying federal income tax. Kukhahn operates several businesses with names such as IMF Decoder, Paralegal Research Advocates, and Advocates for Justice, Liberty and Freedom.
The case is one of three civil injunction suits filed in April seeking to halt tax fraud schemes related to Pinnacle Quest International. A federal court in Florida enjoined PQI from promoting tax fraud schemes in May.
The court found that Kukhahn falsely represented to potential customers that they were not required to pay federal income taxes unless they live in a U.S. territory, and that U.S. residents may be taxed only by a federal excise tax and only if they are involved in an excise-taxable enterprise. The court found that Kukhahn charges her customers between $1,750 and $3,195 for her decoding services. According to the court, the IRS determined that Kukhahn's scheme caused revenue losses to the U.S. Treasury of approximately $4.9 million as a result of her customers' failure to file tax returns and pay taxes. The court ordered Kukhahn to give the Justice Department a list of her customers.
The court also found that after the Justice Department sued Kukhahn, she falsely told her customers that she had transferred funds to the Justice Department for it to use to compensate her customers for any harm they suffered from relying on Kukhahn's services. Kukhahn also said that customers could collect their share of these funds by submitting a claim form to the Justice Department. A total of 328 Kukhahn customers filed claims with the Justice Department seeking payments from the bogus fund. The court ordered Kukhahn to notify all the claimants that there is no such fund.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access