The U.S. District Court for the Western District of Missouri has issued a permanent injunction against Aric Elliot Schreiner and his company, Columbia CPA Group LLC, prohibiting them from engaging in any activities related to promoting tax schemes involving charitable remainder annuity trusts (CRATs). Additionally, Schreiner has been ordered to forfeit $400,000 in ill-gotten gains from the scheme. The court's decision comes after the United States sued Schreiner, Columbia CPA Group, and five other defendants to halt the promotion of the CRAT scheme.
According to the United States’ amended complaint, Schreiner and Columbia CPA Group allegedly misled customers by falsely claiming that they could avoid reporting to the IRS and paying federal income tax on property sales through the use of CRATs. Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division announced the court's ruling, emphasizing the government's commitment to ensuring compliance with tax laws related to charitable remainder trusts.
Apart from being barred from promoting the CRAT scheme, Schreiner and Columbia CPA Group have agreed to refrain from organizing, promoting, or selling other tax schemes, including conservation easements and monetized installment sales. The IRS has highlighted concerns regarding abusive arrangements involving CRATs and monetized installment sales in its 2024 Dirty Dozen series, urging taxpayers to exercise caution.
The Justice Department's Tax Division has a history of obtaining injunctions against individuals involved in tax fraud schemes. Deputy Assistant Attorney General Hubbert encouraged individuals to report any violations of injunctions related to tax schemes, underscoring the importance of upholding tax laws and regulations.