IRS warns of scams as 3 Utahns face criminal charges

SALT LAKE CITY — Three Utahns face criminal proceedings in an alleged tax scam, and with the income tax filing deadline fast approaching, the IRS is telling residents to beware of other schemes.

Calling them the "dirty dozen" tax scams, the IRS warned taxpayers to watch for things like tax return preparer fraud, filing false or misleading forms, and making "unreasonable and outlandish claims" to avoid paying taxes.

IRS spokesman Ron Marker said return preparer fraud is the most common scam and people who use such a service should be diligent about whom they hire.

"Some people think (hiring someone) insulates them, but your name is still on that document," he said. "If you go to a return preparer and they ask you what kind of return you're looking for, that's unscrupulous."

This week, Provo-based tax return preparer Ruben Uribe was indicted on 27 counts of aiding and assisting in the preparation of false tax returns. He allegedly told taxpayers to put false information on their tax forms that resulted in them paying less than they owed. Prosecutors say he ran the scam from 2005 through 2008. Uribe faces a penalty of up to three years in prison for each of the counts.

Charges also were filed against John Kelly Christensen accusing him of tax evasion and failure to file a tax returns in 2003, 2004 and 2005 and using a horse stable business he owned to avoid paying taxes in those years. The indictment states Christensen transferred funds to accounts linked to his children and other companies he held to avoid disclosing his full income.

He faces a maximum penalty of up to five years in federal prison for the tax evasion charges and up to one year for each of the three counts of failure to file a tax return.

Tuesday, Ogden certified public accountant Bradley Folsom pleaded guilty in federal court to one count of filing a false income tax return for telling a client and the client's brother to invest in Antelope Oil and Gas LP, which Folsom said was an oil and gas research and development company, court documents state. Folsom told the pair they would receive a tax break as a result of the investment, prompting them to invest $735,400.

Prosecutors say Folsom used the money it to buy a home in St. George and pay personal expenses. Court documents state that Folsom then failed to list the money as income on his income tax return.

e-mail: emorgan@desnews.com