A Nevada tax preparer was sentenced today to 60 months in prison for operating two false tax return schemes.
“Michael Moore lied to his clients and lied to the IRS all while lining his own pockets,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “To conceal his involvement in his criminal conduct, Mr. Moore impermissibly used a former employee’s identity to file fraudulent returns. Return preparers like Mr. Moore who abuse their clients’ trust and undermine the integrity of the internal revenue laws will continue to be brought to justice by the Fraud Division’s Tax Section, our U.S. Attorneys, and our law enforcement partners like IRS-CI.”
“Today’s sentence sends a clear message that those who manufacture fake wage records for personal enrichment will face severe federal prison time,” said First Assistant U.S. Attorney Sigal Chattah for the District of Nevada.
“Moore’s schemes were designed to cheat the tax system while shifting the resulting burden onto law abiding taxpayers,” said Acting Special Agent in Charge David Lowe of the IRS Criminal Investigation San Francisco Field Office. “Today’s sentence underscores that IRS-CI will aggressively pursue those who exploit the tax system for personal gain, and it should serve as a reminder that financial crimes carry serious consequences.”
According to court documents and statements made in court, from 2015 through 2025, Michael J. Moore, of Las Vegas, was a former CPA who operated a tax preparation, bookkeeping and accounting business that advertised itself as specializing in clients from the adult entertainment industry. Moore promoted a fraudulent tax avoidance scheme called the “Special Tax Shelter Strategy.” As part of the scheme, Moore promised clients that in exchange for a fee he could prepare a tax return that eliminated the taxes they owed to the IRS and, in most cases, create a large tax refund. The fees Moore required as part of this “Special Tax Shelter Strategy” were paid by the clients using the refund money received from the IRS. In many instances, clients were required to pay tens of thousands of dollars in fees.
To carry out the “Special Tax Shelter Strategy,” Moore made up false and fraudulent entries on the clients’ tax returns. In many cases, he did this by including on the returns false business expenses frequently amounting to hundreds of thousands of dollars in losses. In some instances, Moore prepared and filed the tax returns using a former employee’s name and personal identifying information without their permission or knowledge.
After he had been charged for his role in the “Special Tax Shelter Strategy,” Moore engaged in a separate scheme involving preparation of false returns for clients. As part of this second scheme, Moore again reported totally false items on client tax returns. In the second scheme, Moore typically reported false losses from one or more corporate entities, most of which were defunct, dormant or carried on no business. These reported losses were false because the clients had not incurred these expenses.
In total, Moore caused a tax loss to the IRS of more than $3.5 million.
Moore pleaded guilty to one count each of tax evasion, helping a client file a false tax return, wire fraud and aggravated identity theft.
IRS Criminal Investigation San Francisco Field Office investigated the case.
Trial Attorney Patrick Burns of the National Fraud Enforcement Division’s Tax Section and Assistant U.S. Attorney Tony Lopez for the District of Nevada prosecuted the case.
On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
