Washington (Feb. 10, 2004) -- A federal judge in New Jersey has ordered a former Internal Revenue Service revenue agent and appeals officer to stop selling trusts and other tax schemes that the Justice Department contends are fraudulent.

The court order permanently bars Clifton Beale from preparing tax returns for others. It also requires him to post the court order on his Web site, notify his customers of it in writing, and provide the Justice Department a complete list of his customers. Beale worked at the IRS for 19 years.

The complaint alleges that Beale and his affiliated businesses — including Beacon Trust Services LLC, Lighthouse Estate Planning Trust, Tax Compliance Services LLC and Clifton Beale Consulting LLC — have promoted schemes using sham trusts and limited liability companies to help customers claim improper tax deductions for non-deductible personal expenses such as lawn care, utilities and house repairs.

"The Justice Department is determined to stop the promotion of fraudulent tax schemes," said Eileen J. O'Connor, assistant attorney general for the Justice Department's tax division. "This injunction should help assure people who pay their taxes that those who don't, or who encourage others not to, will not get away with it."

-- WebCPA staff

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