Opinion ID: 217701
Heading Depth: 2
Heading Rank: 2

Heading: Criminal Investigation

Text: Michael Anderson, a special agent with the IRS Criminal Investigation Division, participated in an investigation of ARL and executed a search warrant at ARL’s Florida business location. According to Agent Anderson, ARL maintained records for its “clients,” but did not have any tax accounting software or the documents a CPA would need to represent someone before the IRS. None of ARL’s records indicated that either CPA Malatesta or attorney Baxley maintained a professional relationship with ARL’s clients. Instead, ARL paid Malatesta and Baxley solely for the use of their names. ARL’s correspondence sent to the IRS was generated by ARL employees. From 1999 to 2005, the IRS sent Defendant Maggert letters advising him of his federal tax obligations, warning him of possible criminal sanctions and attempting to set up appointments to meet with Maggert. Through ARL, Maggert sent the IRS correspondence, often stamped with the signature of CPA Malatesta or attorney Baxley. That correspondence asserted that Maggert had no obligation to file a federal income tax return or pay federal income taxes and that the IRS did not have the authority to investigate or determine Maggert’s tax liability. 4 Based on financial information from its investigation, the IRS computed Maggert’s taxable income for the years 2002 to 2005 and calculated that Maggert owed the following federal income taxes: at least $51,538 in 2002; at least $50,316 in 2003; at least $101,570 in 2004 and at least $90,464 in 2005.