Actions

DOJ: Guilty plea reached for Nevada man involved in 'fradulent tax avoidance scheme'

Jose Luis Magana/AP

FILE - In this Nov. 28, 2018, file photo, the Department of Justice seal is seen in Washington, D.C. (AP Photo/Jose Luis Magana, File)

By: Narée Asherian

Posted

LAS VEGAS (KTNV) — After "advising clients to commit tax evasion," a man from Nevada has reached a guilty plea in court on Friday, the Department of Justice shared.

Michael J. Moore, the operator of X Tax Pros in Las Vegas, "promoted a fraudulent tax avoidance scheme called the 'Special Tax Shelter Strategy,'" the DOJ said on Friday.

According to the DOJ, Moore used this "strategy" to promise clients tax returns that removed taxes owed, which often resulted in hefty tax refunds — for a fee.

"To carry out the “Special Tax Shelter Strategy” Moore falsified entries on the clients’ tax returns. In many cases, he did this by falsely reporting that the client had sustained a large loss from one or more business entities that Moore controlled. In most cases Moore’s entities carried on no business, did not file tax returns, did not sustain or report any losses to the IRS, and did not report the clients as partners. For some clients, Moore falsified entries relating to cost of goods sold and royalty expenses." — The United States Department of Justice

The estimated cost of Moore's actions has created a "tax loss" of more than $3.5 million to the United States, the DOJ shared.

Moore's sentencing is scheduled for December 8, where officials said he will face: