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Thursday, March 28, 2024 | Back issues
Courthouse News Service Courthouse News Service

55 Months in Prison for|$100 Million Tax Fraud

LAS VEGAS (CN) - A Las Vegas tax preparer was sentenced to 55 months in federal prison for scheming to defraud the government of $100 million in taxes.

Daniel William Porter pleaded guilty last week to conspiring to defraud the United States. He agreed to help federal investigators look into the Tax Break 2000 scheme.

Prosecutors said Porter created the Tax Break 2000 scheme that used a shopping website that "falsely and fraudulently" promised tax breaks for businesses and individuals.

"The intended tax loss based on the purported tax benefits was approximately $100 million due to the scheme," prosecutors said .

Porter and his cronies claimed Tax Break 2000 would help businesses get tax credits and deductions under the Americans with Disabilities Act for modifying a website each customer received and making it accessible for handicapped people.

"We view schemes like Tax Break 2000 as organized tax evasion," said IRS criminal investigator John Collins. "Instead of being a tax break, this fraudulent product cost the victims much more in the end with interest and penalties."

More than 18,000 customers paid $10,475 apiece for the product, which the men sold from 2001 to 2004, according to the U.S. Attorney's Office.

The scheme directed the preparation of thousands of fraudulent tax returns and falsification of 1099 Forms to show fictitious incomes for customers, thousands of whom wound up being audited by the IRS.

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