FOR IMMEDIATE RELEASE THURSDAY, APRIL 10, 2003 WWW.USDOJ.GOV TAX (202) 514-2007 TDD (202) 514-1888 WASHINGTON, D.C. - The Department of Justices Tax Division, working with the U.S. Attorneys Office for the Central District of California, today filed suit in federal court in Los Angeles to stop California attorney Eduardo Marmolejo Rivera from promoting several abusive tax scams. Rivera allegedly promotes three main scams: he sells opinion letters falsely stating that his customers are not liable for federal income taxes; he represents his customers before the Internal Revenue Service for the stated purpose of determining their non-liability for all federal taxes; and he sells an asset protection service that he falsely implies can shield his customers assets from IRS levies.
Tax scammers enrich themselves by helping others violate the law, said Eileen J. OConnor, Assistant Attorney General for the Justice Departments Tax Division. The Justice Department will shut down abuses of the public trust by people who promote tax scams, including those run by licensed professionals. According to papers filed by the Justice Department, Rivera bases his scams on the false notion that only federal employees have to pay taxes. He allegedly directs his customers not to file returns or pay taxes, and tells employers to stop withholding taxes from their employees wages. In its suit papers, the Justice Department states that the IRS is presently unable to estimate the cost to the Treasury caused by Riveras activities; court papers note that the IRS has asserted that six Rivera customers, identified by the agency, owe more than $9.5 million in taxes, interest and penalties.
Tax scams cost taxpayers billions of dollars every year. According to a General Accounting Office report (GAO-02-733) issued last year, however, stepped-up efforts by the IRS and Justice Department to crack down on these scams have led to increasing numbers of convictions of tax fraud promoters. The report can be found online at
Source: US Department of Justice
