Last Dayz: Doomsday 'Prophet' Sentenced To 3 1/2 Years In Tax Case

A federal judge sentenced self-styled doomsday prophet Ronald Weinland to three-and-a-half years in prison on November 14th for failing to pay taxes on income he earned while running a worldwide ministry from his Union home for more than a decade.

U.S. District Judge Danny Reeves also ordered the 63-year-old to pay $245,176 in back taxes and a $7,000 fine. Weinland was found guilty in June of five counts of income tax evasion for failing to pay taxes on $4.4 million in income from 2004 through 2007, according to court records.

"Weinland exploited ... members' devotion to him as the Prophet," Assistant U.S. Attorney Robert McBride wrote in a sentencing memorandum. "Weinland's scheme, lasting many years, perverted his role as a religious leader serving his church to a minister who used his church for financial gain and to escape his tax liabilities."

U.S. District Judge Danny Reeves had received nearly 200 letters from around the world asking for leniency with Weinland. Followers say he helped them through drug addictions or financial hardships.

Weinland's ministry is known as the Church of God — Preparing for the Kingdom of God (PKG). He has told followers that society is in its "final days" and predicts the return of Jesus Christ on May 19, 2013, though he had previously projected May 27, 2012, as the return.

The moral of the story is that even when the world ends, the IRS will get their money.

Tax Preparer Hall of Shame: Michigan Lawyer Permanently Barred for Tax Fraud Scheme

The new inductee of the Tax Preparers' Hall of Shame goes to a........LAWYER!

A federal court has permanently barred a Michigan lawyer, Tammy Daniels of Farmington Hills, from promoting an alleged tax fraud scheme. The civil injunction order, to which Daniels consented without admitting the allegations against her, was signed by Judge Paul D. Borman of the U.S. District Court for the Eastern District of Michigan. In August the court enjoined Daniels’s co-defendants, Damian and Holly Jackson, from preparing federal tax returns for others and promoting the scheme.

The government complaint in the civil injunction lawsuit alleged that the Jacksons and their business, Diamond & Associates Enterprises LLC, operated Diamond Tax Services and promoted a scheme involving the preparation of fraudulent federal income tax returns for customers seeking large tax refunds based on a frivolous tax-defier theory called “redemption” or “commercial redemption.” The suit alleged that tax returns prepared for at least 182 customers under the auspices of Diamond Tax Services sought over $29 million in fraudulent refunds by falsely reporting large amounts of tax withheld on bogus Internal Revenue Service (IRS) 1099 Forms.

Congrats goes to Tammy for being the first lawyer inducted! Let's hope that you paid off your law school student loan bills. Better yet, maybe the former 182 customers will feel sorry for you and help you out. I wouldn't bet on it!

Where's The Love: IRS Warns Consumers of Possible Scams Relating to Hurricane Sandy Relief

Here is a word from the Goodfellas at the IRS:

The Internal Revenue Service issued a consumer alert about possible scams taking place in the wake of Hurricane Sandy.

Following major disasters, it’s common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Such fraudulent schemes may involve contact by telephone, social media, email or in-person solicitations.

The IRS cautions both hurricane victims and people wishing to make disaster-related charitable donations to avoid scam artists by following these tips:

• To help disaster victims, donate to recognized charities.  
• Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. The IRS website at IRS.gov has a search feature, Exempt Organizations Select Check, which allows people to find legitimate, qualified charities to which donations may be tax-deductible. Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) Web site at fema.gov.
• Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution from you. Scam artists may use this information to steal your identity and money.
• Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.
• Call the IRS toll-free disaster assistance telephone number, 1-866-562-5227, if you are a hurricane victim with specific questions about tax relief or disaster related tax issues.

Scam artists can use a variety of tactics. Some scammers operating bogus charities may contact people by telephone to solicit money or financial information. They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds. They may attempt to get personal financial information or Social Security numbers that can be used to steal the victims’ identities or financial resources.

Bogus websites may solicit funds for disaster victims. Such fraudulent sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities, in order to persuade members of the public to send money or provide personal financial information that can be used to steal identities or financial resources. Additionally, scammers often send e-mail that steers the recipient to bogus websites that sound as though they are affiliated with legitimate charitable causes.

Taxpayers suspecting disaster-related frauds should visit IRS.gov and search for the keywords “Report Phishing.”

More information about tax scams and schemes may be found at IRS.gov using the keywords “scams and schemes.”