Attorney-at-Law

FACT-OID? NO, FRAUD-OID

In Uncategorized on 02/02/2015 at 21:36

Yvonne K. Young had twenty years in as a tax preparer and accountant. Being inventive (and possibly bored with e-filing 1040s), Yvonne invented a fine swindle.

Yvonne claimed she received interest from four (count ‘em, four) banks in large sums, but that OID (original issue discount) was withheld, giving her a massive refund (especially after she failed to report other income).

Yvonne generated phony 1099-OIDs, which she claimed came from the banks aforesaid, except they didn’t.

IRS’s computer spat checks in Yvonne’s direction.

So pleased was Yvonne with her fiddle, that she generated 100 phony 1099-OIDs for herself and select clients of her tax prep business.

When the forces of righteousness descended, Yvonne petitioned the deficiencies, additions and penalties. IRS moved for summary J, Yvonne asked for more time to answer (and got it), but never answered.

Rule 37(c) means all of IRS’s assertions of Yvonne’s delictions are deemed admitted.

The fraud axe falls on Yvonne.

As General Galieni remarked about the taxis of the Marne, “Eh bien, voilà au moins qui n’est pas banal!”

You can read all about it at Yvonne K. Young, 2015 T. C. Memo. 18, filed 2/2/15.

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