Gerrit Timmerman III, Tax Defraud Conspiracy, Salt Lake City UT, 2023

SALT LAKE CITY – Gerrit Timmerman III, 70, of Midvale, Utah, and Carol Sing, 73, of Henderson, Nevada, are staring down federal charges after a grand jury indictment Wednesday afternoon revealed a long-running conspiracy to defraud the United States. The pair allegedly peddled a bogus tax avoidance scheme that cost the government at least $5 million.

According to the indictment, announced by Assistant Attorney General Kathryn Keneally and U.S. Attorney David B. Barlow, Timmerman and Sing conspired from April 23, 2004, through March 5, 2007, to market so-called “corporations sole” as a loophole for avoiding federal income taxes. They weren’t offering legitimate legal advice; they were selling a fantasy, prosecutors say.

The scheme was simple, if brazenly illegal. Timmerman and Sing allegedly told clients that these “corporations sole” were magically exempt from U.S. income tax laws, relieving them of the obligation to file returns or even apply for tax-exempt status. They further claimed individuals could render their income untouchable by assigning it to the corporation, then draw a tax-free stipend. Property, too, could be shielded from the IRS by transferring it to the sham entity.

The indictment details the creation of approximately 90 of these corporations sole during the conspiracy’s lifespan. The clients who signed up weren’t exactly tax-compliant citizens to begin with; they already had outstanding federal income tax assessments totaling a staggering $5,000,000 or more. This wasn’t about legitimate tax planning; it was about deliberately dodging debts.

An indictment is not a conviction. Both Timmerman and Sing are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. However, if convicted of conspiracy to defraud the United States, each faces a maximum sentence of five years in prison and a fine of up to $250,000. The government isn’t playing around with tax cheats.

The IRS-Criminal Investigation division is leading the investigation, with Tax Division Trial Attorneys Michael Romano and Dennis Kihm handling the prosecution. This case serves as a stark reminder that attempting to skirt the tax laws comes with serious consequences. The IRS is watching, and they’re prepared to come down hard on those who try to cheat the system.