Todd Mardis might be in prison but he is not forgotten, at least by the IRS as the agency tries to put his company out of business for selling bogus tax plans to wealthy clients.
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| Diagram Mardis used to sell phony tax-savings scheme |
The Justice Department sued Todd Mardis, Thomas Walton Dallas, Esq., and Capital Preservation Services on July 26 in U.S. District Court on behalf of the IRS. The complaint charges the defendants promoted illegal tax-saving schemes since 2014.
Mardis founded Capital Preservation Services but transferred ownership of the company to his wife, Kim, in June 2023. Mardis is currently serving an 18-year prison sentence for aggravated domestic violence after he brutally beat his wife in 2022. Her injuries included broken ribs, lacerated liver, fractured wrist, fractured ankle, severe contusions all over her body, and facial fractures.
Dallas is a tax attorney. He graduated from MSU and earned LLM in Taxation at SMU. Mardis graduated from MSU with a degree in marketing although he took some courses in accounting. He is not a CPA.
The defendants claimed they saved an average $40,000 to $60,000 per year for 600-700 clients while reducing their tax rates from 34-37% to 17-25% since 2014. Mardis and Dallas allegedly targeted customers making between $400,000 and $2 million per year. The dynamic duo claimed they saved customers $130 million in taxes.
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The complaint spells out how the scheme worked.
- The defendants advised clients to create new company to provide “marketing services” for the existing business. They counseled owning only 4% of the company while finding two other persons to own the remaining 96%. However, the client retains “full control” over company despite the 4% ownership.
- Capital Preservation Services advised clients to fund the new company with an amount equal to 10% of the existing businesses income. Clients were told to label the expense a "marketing fee" and claim it as a tax deduction.
- The defendants allegedly advised clients to spend a "minuscule amount" of the so-called marketing fee on actual marketing activities. The "marketing company" funneled the rest of the money back ot the customer as well as his family members via payments for a plethora of "employee benefits." Some of the deducted expenses were medical reimbursements, meals, tuition, vehicles, and retirement savings.
- Clients were advised the marketing company could deduct the expenses for "employee benefits."
- Here is the fun part. CPS advised clients to claim a tax deduction by renting their homes to the "marketing company" at "exorbitant rates, generally stating that the customer can deduct between $2,000 and $4,500 per day." Mardis advised one client to claim a $119,000 tax deduction for renting not one, not two, not three, but four homes to his business for 14 days each. He allegedly advised another client to rent his two homes to the business for $105,000 at 14 days each.
The table below is an example of how Mardis advised his clients.
The complaint alleges the so-called marketing expenses are "bogus" as the "marketing fee" was used to pay the client's personal expenses.
Mardis and Dallas were pros at promoting their alleged scheme as they used webinars, slick promotional materials, books, and Youtube videos such as the one posted below.
The complaint alleged Dallas wrote the tax plan for customers as well as the boilerplate legal opinion letters attached to the plan.
CPS did not allow customer CPA's to review the tax plan prior to implementation.
Unfortunately, many clients bought into the Mardis-Dallas scheme only to find out much to their misfortune they were sold a bogus bill of goods. The U.S. Tax Court called BS on the CPS plans in recent tax cases. The Court disallowed "significant amounts" of the tax deductions. It also held the "rental payments" the customer deducted were unreasonable and for something other than rent.
The IRS audited many CPS customers and "repeatedly disallowed many of their deductions."
The complaint seeks a permanent injunction against Mardis, Dallas, and Capital Preservation Services. The Justice Department alleged the defendants will continue to promote the scheme if the injunction is not granted.
The Justice Department also asked the Court to require the defendants to sign a declaration they have not engaged in the alleged conduct during the previous year by February 28 of each year for the next five years.
The defendants must produce for the IRS a list of all customers who purchased a tax plan since 2014 and their identifying information within 60 days of entry of judgment.
The defendants must remove all videos promoting their tax scheme within 90 days of entry of judgment .
Harris Phillips, Esq. of the Tax Division of the Justice Department is prosecuting the case. The case is assigned to U.S. District Judge Daniel Patrick Jordan, III.
87 comments:
Like everything Todd Mardis-related, it's even worse than I thought.
mardis is a fake and a fraud and always has been . on the other hand dallas is a member of the bar.
mardis is not held to any standard other than that of a fraudster. dallas , however, is a member of the bar and is held to the bars code of professional conduct.
will the bar look into this conduct by dallas? don't bet on it.
Yet more proof that having a lot of money doesn’t make you smarter.
at 15:30 mardis refers to ''unsophisticated IRS agents''..........................mardis is currently in prison for the next 17 years. tell me todd just how sophisticated are you?
god must love these types cause he makes so many of them.
https://dawson.ustaxcourt.gov/case-detail/12505-19
Hit that link for an interesting docket.
Oh look, the docket entry shows an entry on October 3, 2022. What was the crime Todd was convicted for that he committed on October 4, 2022?
Lots more at the link.
ha I wish I had enough money to need to "consult professionals". The closest I get to that is when the HR block software gives me an error message.
I could comment that this is the kind of thing you hate to see, but I won't.
A lot of this sounds criminal as opposed to civil.
yall betas keep talkin shit. yall know todd could curb stomp every single one of you manlets and homos.
Cheating on taxes doesn't make you a bad person.
I knew Mardis was a scumbag but I didn't realize he was also an idiot. This is so comically, obviously illegal that any first year tax associate at an actual law firm would've been fired for suggesting it.
Getting paid to help other unsuspecting douchebro type people cheat on their taxes doesn't make you a bad person.
You guys act like this guy is a crook! You do realize he has a law degree don’t you!!!
"Docket Number: 12505-19
Jason T. Mardis & Kimberly D. Mardis, Petitioners v. Commissioner of Internal Revenue, Respondent"
I once had a wealthy so called friend that sent to prison for 30 months for embezzlement and his wife told some ladies “oh how the mighty have fallen”, we laughed but it probably fits here. Or so they thought.
Where is Toddy staying or “housing” during these cool summer nights?
The IRS needs to investigate the 3,800 IRS employees who owe 50 million in back taxes 2,000 of which have no repayment plan in place. Or they could focus on the 3,800 federal employees who owe a combined total of 1.5 billion. The hypocrisy is off the charts. Source: The Daily Wire 7/29/2024
CMCF
The paying rent for your house for up to 14 days a year is part of what they call "The August Rule". It is supposedly a legitimate deduction for a company.
Regardless of what the Democrats tell you, it's not immoral to want to keep your money.
12:44 Todd graduated from Delta State in Cleveland & they don’t have a Law Program.
They are the same thing.
Does this have a criminal element to it?
to 12;29 the only thing mardis gonna be curb stomping for the next 17 years is cockroaches and ladyboys while inside MDOC.
Did they also identify as Sovereign Citizens. Big savings in DL’s, car tags, auto insurance. “I ain’t driving, Im traveling.”
Todd is a good guy deep down. No one ever mentions the good he has done like putting on hunts for disabled children among other things
Methinks you got a strong boy crush on Todd the man.
You are correct! You can cheat and keep your money while allowing the rest of us to pay for your fair share. Now that is moral.
A person might be better off to pay a legitimate tax practicioner rather than utilize free advice on the internet from a person who possibly confuses "The August Rule" with IRS Section Section 280A aka 'The Augusta Rule"
The issue is not the legality of the deduction. The issue is the criminally fraudulent abuse of the deduction. Pigs get fat. Hogs get slaughtered.
Couldn't happen to a nicer guy.
I wonder whose ass Todd whipped when he was served with process at the prison?
Isn't the old saying eff around with the IRS and find out?
@12:29 has a serious man crush on Mardis
2:23 PM,
They used to say the same thing about Al Capone. He's a great guy.
Taxman already intending to get his from Todd. Just add up the total amount due in the stipulated settlement he signed off on. Well over $120,000?
July 30, 2024 at 2:52 PM, you're a good little sheep. You're showing your ignorance. Taxation is theft, plain and simple. From your point of view, I cheated a thief.
The government doesn't need your money to operate, if it operated only on the taxes coming in, it wouldn't be $35 trillion in debt. The income tax is to keep the people from gaining too much wealth. It's all about control, and you're a good little sheep.
"The defendants must produce for the IRS a list of all customers who purchased a tax plan since 2014 and their identifying information within 60 days of entry of judgment."
That's the part of the post that stood out to me.
You mean like he did his wife? Yeah, real alpha there. Your rock is ready for you to crawl back under.
4:02 same here. They are going after all of those he duped. This is fixing to get dicey. He may be better off where he is than in the streets.
It’s going to be a very bad year for lots of people
Who the heck makes $2M a year in MS? And if so, why the heck are you still living in MS?
Macho Mardis will finally make someone some money. Agreeing with 4:02, local law and accounting firms are about to make a lot of money. The client list best lawyer up and get your finances in order.
listening to this clown mardis one could easily be duped into his ''wealth preservation scam. mardis talks like he is a combination gordon gecko , lawyer, CPA, and an investment tycoon. he's the classic scam artist.in reality the only professional license he has is a license to sell insurance.
which has now been revoked.
wait till mardis sees what those ''unsophisticated'' IRS agents are capable of in this litigation. in terms of being a con artist, you got to get up pretty early in the morning to attract this kind of attention from the IRS.
There's actually a lot of them....but they wouldn't make it a week outside of their "connections" in Podunk, MS. Most of MS is based on this reality.
Why does Mardis' Tax Savings Diagram remind me of the Underwear Gnomes business model? 1) Steal Underwear 2)? 3)Profits!
He must be smart because he was able to get into Delta State Teachers College (lol). Did he even graduate from there?
"CPS did not allow customer CPA's to review the tax plan prior to implementation."
Huge red flag for anyone with half a brain.
"17. Customers generally pay an additional amount to purchase the Audit Defense Plan that Defendants offer."
I would be getting that money back or CPS would be paying my additional taxes. I would like to see how that was written up and sold. Reads like an insurance policy. Didn't CPS also sell insurance?
ONCE THE COURT OBTAINS mardis's little black book of investors there's gonna be a blind panic among those investors and they gonna be willing to tell the feds everything down to the shade of mardis's spray tan.
the discovery process in this civil case may literally be a criminal investigation for conspiracy to defraud the IRS.
mardis thinks hes in deep do-do now , wait until that deal gets rolling. this could very easily ripen into a criminal indictment.
so much for the mardis crack about ''unsophisticated '' IRS agents.
this guy is the biggest con artist around here since lamar adams.
con artristy is so common around here the con artists dont even bother to hid it.
just watch that flim-flam artist mardis run his mouth in that u tube video.
what he is describing is literally how to perpetrate fraud against the IRS.
how bold is that?
Not approving the comment because there were a couple of names on the list that should not be on there.
What is Walt Dallas' involvement here?
@1:10
Uh, co-conspirator and equal partner in their fraudulent tax scheme, plus attorney of record on the legal docs used in said scheme.
I bought the book co-written by Mardis & Dallas for a few bucks online when Mardis tried to kill his wife and his career in “tax expertise” came to light. It explained right in black & white the majority of their “marketing” and “micro-captive insurance” scams that now have half the local dentist community quaking in their scrubs. Anyone who followed such blatant & obvious tax-evasion deserves whatever they get.
Dallas should be disbarred and join Mardis with a little “time away.”
Listening to these financebros throw around churchy buzzwords like "intentional" and "impactful" turns my stomach.
I guess I have a low tolerance for bullshit.
Are we surprised with Mardis? He truly has no excuse. I believe he has some relative that's an attorney, but glad that the IRS cracked down on this stuff. The marketing budget tax plan is an exercise in stupid tax evasion. Watch him appeal it from prison.
The Bar will get around to disbarring Walt Dallas.
Most likely, the Bar will wait until there is a plea or a conviction. It will save the Bar time and money. The Bar Isn't inclined to work hard so they will allow someone else to investigate and prosecute. Then the Bar will fill out some paperwork and submit it to the Supreme Court.
@3:44 Don't be naive. There are current lawyers in Mississippi that have served actual time in prison, including one that faked his own death. Walt will never get looked at by the bar.
Speaking of captive insurance and tax fraud, I hear the IRS is looking into them hard. If so, there will be some lifestyle change with some of our local flamboyant insurance agents and their construction clients.
I thought being likable was a job requirement for a con artist. I've never met a con man that I didn't like before I knew who he was.
I was told that many of the CPS “suckers” were in the medical community. Should be a long list of doctors, dentist, and others starting to sweat!!!
Todd cheated in HS at Prep, cheated on every girlfriend, cheated at MSU, could not cut the mustard in baseball at Sate with grades so had to go to Delta State, Coach K took him in. Cheated on his wife, cheated in his job. I hope he finds himself and Kim too. They were or are so lost.
dallas need to do the following
cut a deal with the feds
confess the request for injunction
pay a six figure ''penalty ' to the feds
rat out mardis
then buy a 10 gallon bottle of clorox bleach and spray wash all of the todd mardis off of him
good
luck mr dallas
to 2:23.....oh please , ''putting on hunts for children ''?..........todd mardis ''hunts'' amount to shooting tame game animals inside a high fence enclosure shooting preserve. thats what that MCLAIN ranch in rankin county is. ..you know , the place mardis hands
out naked photos of his wife.
this is most chicken shit thing anyone can do.....but then agin,,,hey ....it's todd mardis
@10:34am. Todd tried out for the MSU baseball team and was cut because he wasn’t good enough, not because of his grades. To his credit, he was a pretty good baseball player, just not SEC good.
Dallas was selling this scam before he was associated with Mardis.
As a financial planner and tax consultant, I have warned people about CPS and Mardis for years. They use strategies that (many times) are strictly forbidden by IRS letter ruling... or, just plain don't make financial sense. That said, Walt Dallas is much worse than Mardis (business wise). He has been selling these tax scams for decades. If anything with his name comes up in your planning, run.
Woopie. I saved $209,000 in federal taxes with the Mardis plan. Sorry Biden.
mr dallas better grab ahold of his ass and hang on.
wait till the feds find ''smiling on the big water''..................................then we will see who he feeling sorry for.......
Y’all are all so sick kicking this man while down and cheering on his family’s troubles. God will judge yall.
Todd didn't hesitate to hit and kick a woman on the ground.
I'm guessing by the time some of his 'tax plan' clients get their turn in the barrel with the IRS they will be wanting to give him the same type of beating he dished out to hois wife.
Very interesting that this is not a criminal case based on the most recent court actions. If their promotion of a tax scheme was "knowlingly false", that usually lands you in the fed retirement home.
to 8:49.......in the federal system civil cases often have a tendency to ripen into criminal indictments.
a very crafty move by federal prosecutors.
the discovery in the civil case is literally the criminal investigation.
only the defendant targets are too stupid to realize it.
The company either closed or moved. The sign is gone and no one is ever there anymore.
Some Pharma controlled incompetent beta-cuck Bridgewater doctors are about to receive the IRS anal probe! Couldnt happen to a nicer group! Karma is a bitch.
The most satisfying part of this is that all Toddy had to do was not beat his wife to near-death.
If only he had reserved his truly disgusting behavior to the office, this scam might have gone on for some time.
I very much enjoy knowing that his own horrific blind rage was the crack in the dam that brought this all down. Nobody to blame but himself.
Enjoy your well earned punishment, Toddster.
6:06- Before this is all over it will be revealed that the history is actually a lot worse than is generally know at this time.
#IYKYK
Dallas should rot in jail with his buddy.
Not sure what happened to the business but Todd continues to put his family thru hell!! I wonder if the picture swapper (TH) fell for this tax scam. Obviously they were in bed together in many different ways!
this case is snowballing.
next critical occurrence will be when mardis/dallas have to hand over their little black book list of clients.
gonna be a cigarette boat full of hoity toity, benz driving, costa sunglasses wearing, yeti cooler using, ole miss grove going,
beautiful people of the SEC, changing their calvin klien underwear.
put a for sale sign on that place on 30-A, and sell that damn viking 72 foot sport fisher you got docked in destin harbor.
sales on custom 120,000$ pickup trucks are gonna plummet, and dinner reservations at koestler prime and gonna fall off bad.
tell the kids, that their new land cruiser may have to wait .......................
go ahead and make an appointment with an attorney who specializes in federal court criminal defense tax cases. you gonna need him.
10:47 sounds like he has some very specific issues to work out.
to 6:58.....maybe so , but he will not have nearly as many issues as the names of the clients in the mardis/ dallas little black book.
I’m surprised. “The Augusta Rule“ is for real. Here’s what Forbes says about it
“The Augusta Rule is a tax strategy that some business owners can take advantage of to save money for their business while getting a large tax deduction. This rule allows someone to rent out their home tax-free for 14 days or less in a year.”
https://www.forbes.com/sites/forbesfinancecouncil/2023/02/28/how-business-owners-can-use-the-augusta-rule-tax-strategy/
lol 11:14, don't doubt the comments unless you are smart enough to know!
The thing about "The Augusta Rule" is that it allows some tax free income from renting to others. Not the business owner renting to the same or related business to generate bogus expenses and untaxed income.
Mr Mardis and company apparently missed a few of the nuances.
Google "Economic Substance Doctrine" and "sham transactions". There's a reason to hire competent tax and accounting advisors.
Or FAFO like all these smart people did.
If anyone claims they have figured out a whole new way under the current IRS rules (all 401 bazillion of them) to legitimately save high-income people $10s or $100s of thousands in taxes, it is theoretically possible that they are the one who did figure it out. However, if anyone tells you they figured it out more than about an hour ago AND claims to (still) be the only provider of such a tax strategy, they are lying. Period. EOD. If they are making YouTube videos trying to sell their supposedly exclusive bullshit, they are lying. Period. EOD.
Yet another example of what sooner or later (and probably sooner rather than later) will be coming home to roost. There were a fair number of people who managed to acquire enough actual money/income to be clients of these crooked douchebags but were too stupid to know better than to be clients of these crooked douchebags. I don't know if the US and the world is facing another "Great Depression," "Dotcom bust," "Financial Crisis," something similar to any, or worse than all, but the current party will end and it will be extremely and disproportionately rough on such folks no matter the effects on others. It is a market rule: the stupid money ALWAYS takes the worst hit. The smart money was long gone and those without much or any money were never in (and have little or none to lose anyway).
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