WASHINGTON, March 29 (UPI) -- The Justice Department filed suits Monday in California, Colorado, Oklahoma, Missouri and North Carolina to stop an alleged church-status tax scheme.
The alleged scheme also involved a type of company called a "corporation sole."
The suits allege the defendants advised and assisted customers to claim church status for a "corporation sole," to which the customers transfer assets and income that they continue to control.
The government alleged the "corporations sole" are used merely to fund a person's lifestyle, and not for church purposes. The complaint alleges lead defendant Joseph Saladino, of Palmdale, Calif., and his sales organization falsely stated that customers who use corporations sole do not need to file tax returns or pay taxes.
The suits also alleged in another part of the scheme, the defendants helped their customers file false returns seeking refunds from the government for past taxes paid, based on the bogus argument that compensation for personal labor is nontaxable.
The suits seek court orders stopping the alleged practice.
