Las Vegas man pleads guilty in tax scheme
A Las Vegas man pleaded guilty Wednesday to one count of corrupt interference with Internal Revenue Service laws.
Sentencing for James Dilullo, 65, is scheduled for Oct. 3.
Four years ago, according to a statement from the U.S. attorney's office, a federal judge permanently barred Dilullo from preparing tax returns and promoting a fraudulent tax scheme.
Since 1994, according to a plea memorandum filed Wednesday, Dilullo had assisted in promoting and selling trusts and trust packages that fraudulently eliminated taxable income. He also helped his clients prepare false trust and individual income tax returns.
When the IRS began to examine the trusts, Dilullo told his clients that the federal agency did not have the authority to investigate their trusts and that the clients should not cooperate with the investigation.
Dilullo promoted the tax scheme in Nevada, California, Colorado, Kansas, Iowa, Texas, Washington and West Virginia.
According to the statement from the U.S. attorney's office, Dilullo charged customers between $1,000 and $2,000, plus an annual fee, to participate in the scheme. Authorities estimate that the scheme cost the U.S. Treasury more than $2.25 million.
Contact reporter Carri Geer Thevenot at cgeer@reviewjournal.com or 702-384-8710.
