WASHINGTON, D.C. – November 24, 2015 – (RealEstateRama) — Two Utah companies are running a nationwide abusive scheme that purports to use false tax deductions and claims of the solar energy credit to reduce their customers’ federal income tax liability, according to a complaint filed today by the Justice Department. The United States’ complaint seeks to stop Utah companies RaPower-3 LLC and International Automated Systems Inc.; Utah residents R. Gregory Shepard and Neldon Johnson; Nevada company LTB1 LLC and Oregon resident Roger Freeborn, from facilitating and promoting the allegedly abusive tax scheme.
According to the complaint, the defendants know, or have reason to know, that their statements to customers and potential customers about tax benefits in connection with promoting their solar energy scheme are false or fraudulent. The complaint cites a number of reasons that the defendants allegedly know, or have reason to know, about the falsity of their statements, including that the lenses and the facility do not and will not produce solar energy that could be collected and used for any purpose that Congress intended to encourage through tax credits and that their customers are not engaged in any legitimate trade or business related to the scheme.
Abusive tax structures and return preparer fraud are both among the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax DivisionEmail links icon with details.