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Feds Seek To Close Down "Corporation Sole" Scam

By Howard M. Friedman

AP reported Friday that federal prosecutors have filed suit seeking an injunction to prevent a North Carolina man from selling clients a fraudulent scheme to avoid federal income tax. Promoter Andrew DeDominicis has encouraged individuals to form a religious "corporation sole" to shield their assets from creditors and avoid taxes.  DeDominicis falsely told clients that for-profit income transfered to the corporation sole is exempt from income tax. A corporation sole is the entity form traditionally used by the Catholic Church and some other churches to hold church assets. The IRS has identified 163 people who have formed corporations sole-- usually under Nevada law-- with the assistance of DeDominicis.

Full post as published by Religion Clause on January 16, 2011 (boomark / email).