Ex-DD Cops Plea in TaxPeople Case

[George Boutwell]

Ex-IRS director guilty of tax fraud

By DAN MARGOLIES The Kansas City Star

A former IRS district director pleaded guilty Thursday to defrauding the agency in connection with a tax scam orchestrated by Renaissance, The Tax People Inc. of Topeka.

Jesse Ayala Cota, 65, admitted in federal court in Kansas City, Kan., that he conspired to prepare, or have others prepare, false federal income tax returns resulting in a tax loss to the government of about $1.3 million. Cota, who worked for the Internal Revenue Service for more than 30 years before joining Renaissance in 1999, also admitted that he made more than $300,000 from the scheme.

http://www.kansascity.com/194/story/85684.html

[DaveO]

I'm curious how many others posters here

Had clients (or former clients) that got involved with these crooks. I had 5 or 6 people approach me about becoming one of the approved preparers. They had booths at gun and trade shows here and even had a couple of local CPA's get on board. Despite my warnings a couple of people jumped in with both feet. By the time the tax return was due the scam had been busted. They were pretty mad that I wouldn't do their returns.

[erchess]

OH So that's how to grow my business

I need to have booths at gun and trade shows and I need to create or join an illegal tax scheme........ Hmmmm I don't think I really want to take those steps. Perhaps if Federal Prisons became more comfortable I would reconsider.

[Joe Btfsplk]

Guns and audits

When I worked as an Air Force Auditor in the days of Joe McCarthy and the communist fears, one of my fellow auditors explained the Russian Audit procedure to me.

An auditor was expected to correct the discrepancy on the spot--with a bullet aimed at the person responsible for the discrepancy.