The U.S. District Court for the Southern District of Mississippi has issued permanent injunctions against three individuals and a company for promoting fraudulent tax schemes. The injunctions bar Thomas Walt Dallas, Jason Todd Mardis, and Capital Preservation Services LLC from making misleading claims about tax benefits associated with compensation. The defendants have consented to these injunctions.
Court documents reveal that Dallas, Mardis, and Capital Preservation Services actively marketed a deceptive tax strategy at professional conferences and via media appearances. They specifically targeted medical professionals and small business owners, encouraging clients to claim illegitimate deductions. Among the false claims were:
1. Businesses could deduct inflated “marketing fees” paid to fictitious marketing companies.
2. These companies had the ability to employ family members, including minors, and claim deductions for family-oriented expenses such as meals, vehicle costs, and tuition fees.
3. Clients were advised to “rent” their homes to their businesses at inflated prices, allowing them to avoid taxes on the rental income.
The allegations indicate that the defendants were aware, or should have been aware, that their assertions regarding tax benefits were unfounded. This fraudulent scheme is estimated to have resulted in a staggering $130 million in lost tax revenue since 2014.
The announcement comes from a high-ranking official in the Justice Department’s Tax Division, emphasizing the ongoing efforts to combat tax fraud. Each year, the IRS warns taxpayers about scams that threaten their financial well-being and personal information, highlighting the importance of vigilance against promoters of fraudulent tax reduction schemes.
