Federal Law

Why So Long? 79-Yr-Old Dallas Tax Attorney Joe Garza Charged with Hiding More than $1B from IRS

Joe Garza hid more than $1B of client income from the IRS, conning the U.S. Treasury out of roughly $200 million and lining his own pockets.

Dallas Attorney Charged In $1 Billion Tax Shelter Scheme

OCT 27, 2022 | REPUBLISHED BY LIT: OCT 29, 2022

A Dallas attorney who allegedly created tax shelters to help high-net-worth clients conceal more than one billion dollars in income from the IRS has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.

Joseph Garza was indicted Tuesday on 18 counts of wire fraud, one count of conspiracy to commit wire fraud, and 22 counts of aiding and assisting in the preparation of fraudulent income tax returns. He was arrested on October 25, 2022, at his home and made his initial appearance before U.S. Magistrate Judge Ramirez the following day.

“This attorney allegedly hid more than a billion dollars of client income from the IRS, conning the U.S. Treasury out of roughly $200 million and lining his own pockets in the process,” said U.S. Attorney Chad Meacham. “Our country functions best when every citizen pays his or her fair share. We will aggressively pursue anyone who subverts our tax laws.”

“IRS Criminal Investigation and the Department of Justice are working vigorously to stop abusive tax schemes like the ones created by Mr. Garza,” said Christopher J. Altemus, Jr., Special Agent in Charge of IRS Criminal Investigation Dallas Field Office. ” Mr. Garza exploited his position as an attorney and purported tax expert to try and legitimize his illegal tax scheme. His arrest should serve as a warning that individuals who create elaborate schemes that have no purpose other than to defraud the IRS and shift the tax burden to honest American taxpayers will be prosecuted.”

According to the indictment, Mr. Garza, 79, allegedly created multiple shell companies – including shell “services” companies and shell “investments” companies – to create a circular flow of funds to help clients avoid paying taxes.

These shell companies purported to provide services to the clients’ businesses or to serve as family investment vehicles, but actually had no legitimate purpose other than to move money. Mr. Garza and others allegedly created sham operating agreements, sham service agreements, phony invoices, and false private annuity agreements designed to give the companies the appearance of legitimacy and conceal the scheme from the IRS.

Mr. Garza and others then allegedly assisted clients in the preparation and filing of fraudulent tax returns, including IRS Forms 1120 and 1120-S, falsely deducting businesses expenses for services that were never performed; IRS Forms 1065 for the service companies, falsely reporting gross receipts for payments that were not earned; IRS Forms 1065 for the investment companies, falsely deducting payments from the investment company to the taxpayer for annuities that didn’t exist; and IRS Forms 1040 and 1040X, underreporting the individual taxpayers’ incomes.

He allegedly charged clients a percentage of the predetermined amount of money they had chosen to shelter from taxes.

The scheme allegedly resulted in more than $1 billion in unreported income and more than $200 million in unpaid taxes.

An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Garza is presumed innocent until proven guilty in a court of law.

If convicted, he faces up to faces a maximum penalty of 20 years in prison for each of the 18 counts of wire fraud, 20 years in prison for conspiracy to commit wire fraud, and three years in prison for each of 22 counts of aiding and assisting in the filing of false federal income tax returns.

Meanwhile, the investigation is ongoing.

IRS – Criminal Investigations’ Dallas Field Division conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office.  Assistant U.S. Attorneys Renee Hunter, Katherine Miller, and Marty Basu of the Northern District of Texas are prosecuting the case with Trial Attorney Robert Kemins of the Justice Department’s Tax Division.
Topic(s):
Tax
Component(s):
Tax Division
USAO – Texas, Northern
Contact:
Erin Dooley Press Officer 214-659-8707 erin.dooley@usdoj.gov
Updated October 27, 2022

Joe Garza, Partner

Joe B. Garza has practiced as as tax and transactional attorney for over three decades.

His major areas of practice include merger and acquisition negotiation and implementation, tax exempt financing, business organization and succession planning, income tax and estate planning, asset protection, securities transactions, and retirement plan consultation.

Mr. Garza has structured, negotiated, and closed more than $300 million of debt transactions and over $1 billion of tax exempt bond transactions as Bond Counsel for the state of Texas.

His tax advisory work is a fundamental component of his practice, serving over 2,000 clients nationally and internationally.

Tax Preparer Pritesh ‘Tony’ Patel Was Sentenced to 72 Months Custody Per Court Order. He Contests This Fact.

Federal Prison Sentences and Home Confinement. Maverick felon Pritesh Patel states I have NEVER been to jail as your caption suggests.

Officiating Weddings Was Easy Cash for this New Orleans Judge Until the IRS Audit

federal grand jury in New Orleans returned an indictment today charging a city court judge with filing false tax returns.

Lyin’ Ted of Texas Writes with Support of Twenty Senators Who Have Urged the Treasury to Follow Up On Their Idea to Give the Wealthy Another Tax Cut via Executive Order.

Rallying around to stir more hyperbole, in a letter sent to Steve Foreclosure King Mnuchin on Monday, the Lyin’ Senator from Texas urged the Treasury Secretary to use his authority to index capital gains to inflation, a move that would almost exclusively benefit the mega-rich.

Why So Long? 79-Yr-Old Dallas Tax Attorney Joe Garza Charged with Hiding More than $1B from IRS
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Laws In Texas first started as an independent investigative blog about the Financial Crisis and how the Banks and Government are colluding against the citizens and homeowners of the State of Texas, relying upon a system of #FakeDocs and post-crisis legal precedents, specially created by the Court of Appeals for the Fifth Circuit to foreclose on homeowners around this great State. We are not lawyers. We do not offer legal advice. That stated, LIT's Blog has grown tremendously during the three or so years it has been operating and our reach is now nationwide as we expand via our micro-blogs in various states. Join us as we strive to bring back justice and honor to our Judiciary and Government employees, paid for by Citizens.

Donate to LawsInTexas. Make a Difference.

Subscribe to Our Newsletter

We keep your data private and share your data only with third parties that make this service possible. See our Privacy Policy for more information.

© 2020-2023 LawInTexas com is an online trading name which is wholly owned by Blogger Inc., a nonprofit 501(c)(3) registered in Delaware. | All Rights Reserved.

To Top