Thursday, December 6, 2012

Two more metro area people found guilty of tax fraud

Posted By on Thu, Dec 6, 2012 at 11:15 AM

The IRS really doesnt like it when people steal from it.
  • The IRS really doesn't like it when people steal from it.
Joshua Simonson and his wife, Kristen Simonson, of Oak Grove were convicted of tax fraud Wedneday. They were the latest people in a trend of metro area residents pleading guilty or being convicted in federal cases for schemes using form 1099-OID. In July, The Pitch wrote about Shirley Oyer, a Kansas City woman who was accused of being part of a nationwide group of people promoting a form 1099-OID tax-fraud scheme. Oyer pleaded guilty in September.

In the scheme, people use a form called 1099-OID to claim a tax deduction for interest they supposedly earned on investments. Scammers also take deductions on most debt they have (home mortgages, car loans, etc.) in order to get rebates. Of course, this is illegal. The couple committed the fraud with their 2006 and 2007 taxes. (Read the IRS's explanation of the delusional reasoning behind the scheme. It's fascinating.)

According to a press release from the U.S. Attorney's Office, the Simonsons cashed in big time. "As a result of their fraudulent claims, the Simonsons received three refund checks totaling $810,218. Kristen Simonson received a $582,277 refund check and a $4,215 refund check. Joshua Simonson received a $223,726 refund check," the release says. The U.S. Attorney's Office also says that when the IRS told the pair that they had to give the ill-gotten cash back, they sent the government bad checks. The jury deliberated in the case for just two hours.

It could get some serious time in the big house for the spouses. Joshua Simonson is subject to a sentence of up to 95 years in federal prison without parole, and Kristen Simonson is subject to a sentence of up to 60 years in federal prison without parole.

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