US Targets Bristol Man for Promoting Bogus Tax Refunds
Charles Sewell of Bristol, Virginia, has been sued by the US government to stop him from promoting an alleged scheme involving fraudulent tax refund claims. According to the government’s amended complaint, Sewell creates fake Internal Revenue Service (IRS) Forms 1099 for other taxpayers and files them with the IRS.
The complaint alleges that Sewell’s scheme is based on the “commercial redemption” theory, in which individuals make refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS. The lawsuit alleges that Sewell’s customers sought $67 million in bogus refunds as a result of Sewell’s conduct.
Claiming bogus tax refunds based on false Forms 1099-OID is one of the IRS’s “Dirty Dozen” tax scams for 2012. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers.
The government’s amended complaint details Sewell’s alleged scheme and seeks a permanent injunction to bar him from promoting the tax fraud scheme.
The case, United States v. Charles Sewell, et al., involves Sewell promoting tax fraud by creating fake IRS Forms 1099 for his clients.
Defendant: Charles Sewell, Tax Fraud Promotion, Virginia 2024
Criminal Charge: Tax Fraud Promotion
City and State: Bristol, Virginia
Date: N/A (alleged)
Sentence or Outcome: N/A
Dollar Amount: $67 million
Related Federal Cases
- Jeffrey Phares, Wire Fraud, West Virginia 2023 · Virginia
- Jeffrey Phares, Wire Fraud, West Virginia 2023 · Virginia
- Jeffrey Phares, Wire Fraud, West Virginia 2023 · Virginia
- Nitesh Ratnakar, Tax Evasion, West Virginia, 2023 · North Carolina
- Stewart Parnell, Mail and Wire Fraud, Virginia 2009 · Washington
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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