Ronald J. Cappuccio, J.D., LL.M. (Tax)

CALL

Innovative Strategies For Winning Tax Controversies, Business Structuring And Estate Planning

IRS Shuts-Down “National Trust Services” Scheme

| Jun 7, 2003 | Uncategorized

IRS SHUTS-DOWN “NATIONAL TRUST SERVICES” SCHEME

FOR IMMEDIATE RELEASE

TAX

TUESDAY, JUNE 3, 2003

(202) 514-2007

WWW.USDOJ.GOV

TDD (202) 514-1888

CALIFORNIA FEDERAL COURT BARS NATIONWIDE TAX SCHEME

Justice Department Alleged Roderick Prescott sold hundreds of sham

trusts

WASHINGTON, D.C. – A federal court in San Diego yesterday

permanently barred Roderick Prescott and his business, Trust Educational

Services, from selling trust schemes falsely claiming that personal

expenses incurred by customers can be paid through a trust in order to

obtain tax benefits not available to individuals. Prescott agreed to

the court order and is required to give the Justice Department records

showing the names of customers who attended his workshops or used his

“trust system.”

“The Department of Justice is vigorously pursuing tax

schemes based on bogus trusts,” said Eileen J. O’Connor, Assistant

Attorney General of the Tax Division.

Using the names National Trust Services and Trust

Educational Services, Prescott allegedly conducted workshops and sold

hundreds of trust documents, some for as much as $15,500, throughout the

United States. According to papers filed by the Justice Department in

the case, Prescott’s bogus trusts encouraged purchasers to under report

their income and claim improper deductions on their tax returns,

resulting in an estimated $135 million revenue loss to the U.S.

Treasury.
see: http://www.TaxEsq.com

Archives

Categories