A bogus insurance tax shelter is at the heart of those receiving a felony conviction for being involved in the Foster and Dunhill tax fraud scheme.
Two Texans, John Thomas and Lee Kidd were oil businessmen who owned Thomas & Kidd Production, Ltd, along with other related businesses. Their accountant, H. Glenn Anderson formed a business relationship with Stephen Donaldson who sold offshore tax shelter transactions through Foster & Dunhill; a marketing company. Foster controlled the business operations for Foster & Dunhill, an offshore trust company, First Fidelity Trust, and several additional insurance companies.
A Foster & Dunhill transaction involved the bogus sale of (BPPs) Business Protection Polices for the provision of reducing capital gains, asset protection, reduction of business and personal income taxes, and an investment plan to create tax-free retirement income.
There can be a lot of information buried in these types of schemes, and sometimes, people are caught up in the scheme without fully knowing what they’re getting into. At that business level, an investor should always have access to qualified and trusted tax attorneys who can help them navigate the complex world of taxes.
No matter one’s level of business acumen, it pays to understand the game at every step of the way.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney