Man Who Promoted Lavish Lifestyle Through Tax Avoidance Nabbed For ... Tax Avoidance
(Again, don't try this at home, kids). Dana Ray Reynolds of Huntington Beach pleaded guilty this week to filing false tax returns in 2002 and 2003, according to the U.S. Attorney's Office in Los Angeles. He advised his customers to use corporations to hide personal income and assets from Uncle Sam. He allegedly did just that under his own corporations, with dire consequences.
Federal authorities say he "failed to report well over $300,000 in income from the Internal Revenue Service in each of the years," according to the U.S. Attorney's Office statement. Feds say he used his tax-avoidance companies, Repackaging America, Inc. and Incorporating You, Inc., to funnel personal and family expenses, including a vacation home, cars and RVs.
"To market his concealment and avoidance strategies, Mr. Reynolds highlighted his own elaborate lifestyle made possible by following the plans he developed," said Leslie P. DeMarco, Special Agent in Charge of the IRS' Criminal Investigations office in L.A.
The scheme amounted to an $80,000 tax loss for the IRS, the U.S. Attorney's Office states. Sentencing, which could bring six years behind bars, is scheduled for Sept. 13.