**$64 Million Tax Scam in Missouri Uncovered**
KANSAS CITY, Mo. – A federal court has shut down Gerald A. Poynter II, a tax preparer from Kansas City, Mo., who promoted a tax scam that helped his customers claim fraudulent tax refunds worth over $64 million. The scam, which involved phony reporting of large income tax withholding, was a variation of the repeatedly rejected "redemption" scheme used by tax defiers to evade tax obligations or obtain wrongful financial benefits.
According to the court, Poynter, who used the business name "Jerry Love Ministries," prepared false Internal Revenue Service (IRS) forms to support false tax refund claims on behalf of his customers. The court found that Poynter told his customers that he could recover money rightfully owned by taxpayers from the U.S. government for a fee, a claim that was later proved false.
The court found that Poynter helped at least 165 customers make fraudulent refund claims totaling more than $64 million. The IRS catches the vast majority of false "redemption" claims, and civil and criminal penalties for taxpayers who file such claims can be severe.
The IRS has recently advised taxpayers to beware of tax scams like return preparer fraud. In the past decade, the Tax Division has obtained hundreds of injunctions against tax-fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice website.
Poynter’s scheme is a prime example of the types of tax scams that the IRS and the Tax Division are working to prevent. The Tax Division will continue to aggressively pursue individuals who promote and perpetuate tax scams, ensuring that they are held accountable for their actions.
Taxpayers can protect themselves from tax scams by being cautious of tax preparers who promise unrealistic refunds or make false claims about the tax code. They can also report suspicious activity to the IRS by calling the IRS at (800) 829-1040 or visiting their website at IRS.gov.
**The Tax Division’s efforts to combat tax scams are ongoing and will continue to be a top priority. The public can help by reporting suspicious activity and being vigilant when dealing with tax preparers.**
Related Federal Cases
- Virginia Marie Hayes, Tax Refund Scam, MO 2017 · Washington
- Michael Jett Sentenced to 23 Months for Tax Evasion, MO, 2023 · Georgia
- Albert Davis, Wire Fraud, Kansas City, MO, 2023 · Texas
- Russell Hopkins, Securities Fraud Conspiracy, Kansas City MO, 2023 · Missouri
- Harry Najim Pleads Guilty to Cigarette Smuggling, Kansas City MO, 2023 · Washington
Key Facts
- State: Kansas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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