The U.S. District Court for the Southern District of Mississippi has issued permanent injunctions against Thomas Walt Dallas, Jason Todd Mardis, and Capital Preservation Services LLC. The court's decision bars them from making statements about tax benefits for compensation and includes other relief measures. The defendants consented to the entry of the injunctions.
According to the complaint, Dallas, Mardis, and Capital Preservation Services marketed a tax scheme at various professional conferences and media appearances aimed at medical professionals and small business owners. They allegedly made false claims that customers following their "Tax Plans" could claim multiple deductions to which they were not entitled. These claims included: (1) businesses could take deductions for paying large, unnecessary "marketing fees" to newly created sham marketing companies; (2) these marketing companies could employ family members, including minor children, and take deductions for family meals, vehicle expenses, and tuition; and (3) customers could "rent" their homes to their businesses on a short-term basis at exorbitant rates and avoid paying taxes on the rental income.
The complaint further alleges that Dallas, Mardis, and Capital Preservation Services knew or had reason to know that their statements about the supposed tax benefits of the tax plans were false. The alleged harm from the scheme could amount to as much as $130 million in lost tax revenue since 2014.
Deputy Assistant General David A. Hubbert of the Justice Department’s Tax Division announced this development.
Each year, the IRS highlights some of the tax scams that put taxpayers at risk of losing money, personal information, data, and more. In its most recent list, it specifically warned taxpayers "to beware of promoters peddling bogus tax schemes aimed at reducing taxes or avoiding them altogether."
Working with the IRS, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters over the past decade. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.