In this episode of Final Notice, Jason Carr breaks down a nationwide abusive trust tax shelter case involving four convicted promoters, hundreds of high-net-worth business owners, and approximately $40 million in tax loss.
Show Notes:
A federal jury convicted Marcia Predmore, Roderick Prescott, Suzanne Thompson, and Weldon Wulstein for their roles in an abusive layered trust tax shelter that DOJ says helped business owners evade federal income tax on up to 98 percent of business profits.
The shelter used a business trust, family trust, charitable trust, and private family foundation, and was marketed with the phrase “own nothing, control everything.”
Jason explains how abusive trust structures cross the line, why warnings from attorneys, CPAs, financial professionals, and IRS guidance matter in criminal tax cases, and what legitimate business owners should do instead when they need tax planning, asset protection, estate planning, or charitable giving advice.
Key Takeaways
- A trust is not a device for making taxable income disappear.
- Asset protection and estate planning are legitimate goals, but they need real legal substance and clean tax reporting.
- Personal expenses do not become deductible because they move through a trust.
- Charitable deductions require real charitable transfers, substantiation, and loss of personal control.
- Tax professionals should be cautious when a promoter asks them to prepare returns based on a packaged tax shelter.
- If the plan depends on a slogan like “own nothing, control everything,” get independent tax counsel before signing or paying.
Resources Mentioned
DOJ case source: https://www.justice.gov/opa/pr/four-abusive-tax-shelter-promoters-found-guilty-40m-nationwide-tax-evasion-scheme
The Law Office of Jason Carr, PLLC: https://carrtaxlaw.com