Washington (Sept. 26, 2003) -- Ohio CPA Robert C. Welti has been permanently barred from preparing federal tax returns and representing clients before the Internal Revenue Service for allegedly using sham trusts and phony deductions to help clients cheat on their taxes.
In addition to barring Welti from preparing federal income tax returns, Judge Susan J. Dlott of the U.S. District Court for the Southern District of Ohio also ordered him to disclose the names of all persons for whom he prepared income tax returns since 1988.
"This injunction is a victory for the law-abiding American taxpayer," said Claire Fallon, Deputy Assistant Attorney General for the Department of Justice’s Tax Division. "The Justice Department will move to shut down individuals who promote fraudulent tax schemes and scams. In addition, participants in such schemes may be subject to back taxes, penalties, and even criminal prosecution."
According to the complaint, Welti allegedly prepared federal income tax returns that professed eliminating taxes for hundreds of clients based on sham trusts and bogus deductions. This alleged scam resulted in more than $3 million in total annual tax understatements.
-- WebCPA staff
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