Lie about your income is tax fraud, reminds Forbes. It would seem that to avoid paying taxes, people must understate your income — in fact, surprisingly many taxpayers, by contrast, overstate income to obtain a large fraudulent tax refunds.
What happens when taxpayers are lying to collect tens of millions of dollars in tax refunds? What happened in a family conspiracy to get the US internal revenue service (IRS) to recover $ 175 million — until the entire amount is not reached, but $3.4 million scammers yet received.
35-year-old Daniel Edmonson and 51-year-old Kenneth Edmonson began to file fake tax returns in 2015. Daniel filed a tax return for the 2014 tax year, demanding a refund in the amount of 239 700 dollars. She made several fraudulent handwritten forms, supposedly written on behalf of legal entities in the U.S. as evidence that it paid more than $ 300,000 in taxes. Based on these data, the IRS released Daniel a check for a refund. She cashed the check and used the proceeds to buy a BMW over 53 000 dollars; she also withdrew $ 60,000 in cash.
Encouraged by this success, Daniel filed a similar return next year. This time she claimed to have paid 141 million dollars in the form of winnings in the lottery, and as a result demanded compensation in the amount of 80 112,167 USD. Again she made a fake form. This time the IRS showed suspicion — and rejected her.
That didn’t stop Daniel. She again tried to file a tax return for the year 2016, in September 2017, arguing that she was due a refund in the amount of 2 073 405 dollars. It is noteworthy that the IRS has approved her request, taking a few extra dollars. Surveillance video shows that Daniel handed over a check for $2 405 193 in the Bank.
Of course, in 2018, she tried again. Knowing that “the juice” should be somewhere between 245 073 dollars and 80 112 167 dollars, it requested a tax refund in the amount of 9 572 279 dollars for the 2017 tax year. This time the feds got a warrant and searched the house Danielle.
In 2017, the father of Daniel, Kenneth Edmonson, tried their hand at getting a tax refund. Kenneth filed a tax return for the 2016 tax year, demanding a refund in the amount of $ 725 111. In January 2018, the IRS released a check for the tax refund to Kenneth in the amount of 734 266,27 dollars (including interest at the rate of 9 036,27 dollars). Kenneth put the money into your account in wells Fargo, and in ten days the IRS paid him a visit. After they left, Kenneth returned to wells Fargo and tried to pick up the money.
Despite the Federal presence, Kenneth tried again. 20 March 2018, he filed an amended tax return for the 2016 tax year, demanding a refund in the amount of 825 628 U.S. dollars on the basis of false deductions.
April 2, 2019, the Department of justice brought charges against Daniel and Kenneth Edmonson. Daniel replied that he had acted “lawfully” and demanded her immediate release, and an additional $ 100 million for “causing damage to private property (my body)” and other alleged damages totaling approximately $ 400 million. She also stated that “the IRS is not a government Agency (!), but just the debt/accounting firm”. The woman added that he is a sovereign citizen, not subject to the jurisdiction of the United States, because she supposedly native American-mauritani. Federal courts and Federal agencies, including the Department of Finance has consistently rejected demands sovereign citizens.
The trial started on December 16, 2019, and before the holidays it is expected the verdict.