Court Permanently Stops Mississippi Professionals And Businesses From Arranging And Selling “Tax Schemes”

The US District Court for the Southern District of Mississippi issued permanent injunctions against Thomas Walt Dallas, Jason Todd Mardis, and Capital Preservation Services LLC. These rules prevent them from making statements about the tax benefits of compensation. The defendants agreed to these terms.

According to the complaint, Dallas, Mardis, and Capital Preservation Services advertised the fraudulent tax plan at professional conferences and through media appearances. They targeted medical professionals and small business owners. The program advises customers to file claims for deductions they should not receive. False claims included:

1. Businesses may take a deduction to pay large, unnecessary “marketing fees” to fake marketing companies.
2. These sales companies can hire family members, including minor children, and take deductions for the family’s food, car and tuition expenses.
3. Customers can “rent out” their homes to their businesses at higher rates and avoid paying taxes on the rental income.

The complaint alleges that Dallas, Mardis, and Capital Preservation Services knew or should have known that their statements about tax benefits were false. The program is said to have created up to $130 million in lost tax revenue since 2014.

The announcement was made by Deputy Assistant General David A. Hubbert of the Department of Justice’s Tax Division.

Every year, the IRS highlights tax scams that put taxpayers at risk of losing money and personal information. The latest IRS list warns taxpayers to beware of promoters who sell false tax schemes to reduce or avoid taxes.