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IRS RAIDS TAX CONSULTING FIRM


Lee B

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Now here's something you don't read about every day! 🤨

"Agents from the Internal Revenue Service’s Criminal Investigation division raided the Houston headquarters of tax consulting firm AlliantGroup, seizing computer servers Friday, May 20, and prompting the firm to give employees the day off Monday until they were able to return Tuesday morning.

The nature of the investigation is unknown, but is thought to be related to the firm’s work in securing tax credits and other incentives for clients, some of which have been challenged by the IRS, leading to lawsuits after the IRS denied the claims and clients refused to pay the firm, according to the Going Concern blog. Even though employees were allowed to return on Tuesday, IRS agents returned to the Galleria building where the firm is based and continued to search other floors Tuesday"

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1 hour ago, cbslee said:

Now here's something you don't read about every day! 🤨

Even though employees were allowed to return on Tuesday, IRS agents returned to the Galleria building where the firm is based and continued to search other floors Tuesday"

Must be a fun work environment for the employees.  I assume the firm will be holding some team building exercises, potentially behind bars. 

 

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I was deposed by IRS investigators in a criminal case.  The investigators found a copy of my software on a seized computer and asked what my relationship was with the (now in the care of the government via incarceration).  Once I explained the connection, I was thanked and left alone.  The person was convicted of fraudulent return as they were filing for their clients (recent immigrants) and capturing their refunds, which has been improperly inflated via EITC.  The convicted sent me threatening messages, even though I had no information for or against their case, but which the prosecutor likely found "helpful".

The OP is a good reminder to research electronic record keeping regulations, and to try to ensure your actions do not give blanket search and seizure rights to the IRS.  Not only for your client's protection, but simply to protect your ability to do daily business.  As I have likely posted many times, not being able to provide PRINTED records, or simply acting in a way to show your record keeping is electronic, may (definitely in the past, and possibly with current regs unless they have been revised) give the tax agencies any time warrant-less search rights, and requires proactive notification to the IRS if there is any chance required data is unavailable.

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  • 1 month later...

"On May 20 the Houston headquarters of R&D tax credit consulting firm Alliantgroup was raided by the IRS, in the weeks since we’ve had plenty of speculation about the whys and we’ve heard countless accounts from current and former Alliantgroup employees about the “evil, toxic, and emotionally damaging company” that employed them. We’ve now learned that the government is sending subpoenas to CPA firms that referred clients to Alliantgroup and is seeking client tax returns as part of the investigation.

Going Concern has reviewed a letter from one CPA firm to clients that received services from Alliantgroup advising these clients that the firm has received a federal grand jury subpoena seeking information relating to Alliantgroup. The government’s demand for information is “broad” and includes tax returns and related information in the firm’s possession for clients who received services from Alliantgroup. The government’s demand references R&D tax credits, cost segregation, and IRC Sec 179D and any related information from January 1, 2011 to present.

Clients are assured the firm believes the focus of the grand jury proceedings is strictly related to Alliantgroup, not the clients. The letter states in explicit terms that the firm has no reason to question prior tax credits and/or deductions clients took as a result of their relationship with Alliantgroup at this time. The letter does advise however that clients are welcome to consult with their own attorneys to better understand their rights in this legal matter."

 

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20 hours ago, cbslee said:

Clients are assured the firm believes the focus of the grand jury proceedings is strictly related to Alliantgroup, not the clients.

LOL. The IRS might not be going after clients for fraud, but they will most certainly disallow some credits and assess penalties and interest for late payment.

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