Call Now (800) 681-1295
Close

What Happens when You Get Caught Filing a Fraudulent Tax Refund?

Table of Contents

    Richard Kellogg Armstrong, age 77 was just sentenced to 9 years in federal prison plus three years of supervised release at the end of his sentence. In addition he was fined $1,021,500 as sanctions for 10 separate and distinct acts of contempt of court. He was also ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $1,678,834 and to forfeit two personal residences and a personal aircraft.

    Curtis L Morris (tax preparer), and Richard Kellogg Armstrong (client turned promoter) devised a scheme to defraud and to obtain money and property by means of false and fraudulent material pretenses and representations from the Internal Revenue Service (“IRS”), through the submission of false claims for federal income tax refunds, as part of individual federal income tax returns filed with the IRS, that were based upon and supported by false and fictitious information about federal income taxes purportedly withheld on original issue discount income, as set forth in the federal income tax returns and as purportedly reflected on IRS Forms 1099-OID filed with the IRS.

    Armstrong, who was one of Morris’ tax clients, received more than $1.6 million from bogus returns and hid the proceeds in offshore bank accounts while recruiting for and promoting the scheme.

    This case is evidence that being of advanced age will not prevent a criminal prosecution and or fend off incarceration. The preparer here also has his own problems…

     

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    tax lawyers

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    California
    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    Arizona
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    Texas
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    Nevada
    (702) 997-6465
    Florida
    (786) 999-8406
    Utah
    (385) 501-5934