U.S. sues Ohio man and his company for improper theft loss tax deductions

April 19th, 2010 - 11:10 pm ICT by BNO News  

WASHINGTON, D.C. (BNO NEWS) – An Ohio man and his company was sued by the United States for claiming improper theft loss tax deductions, the Justice Department announced Monday.

Tobias Elsass of Columbus, Ohio, who is suspended from the practice of law, is the founder of Fraud Recovery Group, a Worthington, Ohio, company that has allegedly helped customers in numerous occasions claim theft loss deductions when the customers, in fact, did not qualify for them.

Elsass and Fraud Recovery Group allegedly target potential customers who have experienced significant investment losses, offering them to prepare federal income tax returns claiming a deduction from the “theft loss” the customer supposedly experienced. In return, they ask for a percentage of the anticipated tax refund that will result from their services.

If a taxpayer is able to substantiate that a loss was experienced in the result of theft of certain criminal investment frauds, federal tax law allows victims to claim a theft loss deduction.

In the lawsuit, the United States is seeking for Elsass and Fraud Recovery Group to be barred from promoting their scheme and preparing tax returns for others.

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