If a company creates a rental invoice that has fraudulent "tax exempt" fees on it.. Is it tax evasion

Los Angeles, CA Viewed 121 times. Posted 6 months ago in Tax

A company creates a rental invoice that has fraudulent "tax exempt" "political subdivision" collected fees on it and the law states that all charges for a "lease" that are not specifically defined are subject to tax. This company advertises worldwide thru the internet

What can they be charged with ?
The fees collected were not taxed... Tax Fraud ?
The fraud was on the internet and victims live out of state... Federal ?
Wire Fraud ?

Additional information
I'll try again... Political subdivision = government agency or arm with certain defined criteria. They assess a fee on all rental vehicles that have access to the airport. A scab company books reservation and charges this fee they dont/cant pay anyway. This is the fraud. the law states you must pay tax on "all charges" on a rental contract not specifically excluded. This fee is excluced... except, its fraud and not real on this reciept. They charged it, recieved it, but didnt pay it. If this scam falsely creates a lower price and this "make-up" fee is not taxed, the government has missed their tax on the difference,in $3-6/ rental and they rent @1000/day. However... is this fraud tax fraud, regular fraud, internet fraud.... etc ?

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Answers (2)

Ronald Anthony Sarno

This attorney is licensed in New Jersey and 1 other state. Posted 6 months ago.

The perpetrators of this fraud are most likely sitting in an internet cafe in Lagos, Nigeria laughing their heads off, First of all anyone who bought into this scheme is subject to a tax evasion charge from the federal and state authorities, As for the perpetrators, you can be sure the names and companies they used are non existent.
They can be charged by the government with aiding and abetting tax evasion. I do not believe the users of this scheme have any cause of action since common sense would tell them they are not a political subdivison exempt from taxes.

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LEGAL DISCLAIMER
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with a local attorney about this issue.