Just another tax scam.
http://www.irs.gov/newsroom/article/...121566,00.html

Phoebe

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John wrote:

- quote -

Well, I don't know that you looked very hard for contrary
information if you didn't find this gem:

http://www.irs.gov/newsroom/article/...121566,00.html

You might also want to look at:

http://www.quatloos.com/corporation_sole_scam.htm

A Google search on "corporation sole" and IRS turned up a
number of hits--most of which tended to also have the word
"scam" in the document.

Basically, this deal is on the IRS and the Department of
Justice's radar now.

--
Ed Zollars, CPA
Phoenix, Arizona

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I've seen the corporation sole being promoted on the
internet by dozens of corporate sole sales companies, as a
way of organizing churches and ministries.

The corporate sole salespeople are claiming all kinds of
impressive attributes of the corporation sole, including tax
immunity and asset protection, not only for real churches,
but for just about anything imaginable, like personal assets
and businesses. I've talked to some of these folks and they
say that I could call just about anything I'm doing "a
church," organize a corporation sole, and then I won't have
to pay taxes.

Some of them say that I could conduct my business as a
corporation sole and not have to pay taxes or file returns
of any kind. Others say the way to structure is to have my
business structured as an LLC and owned by a corporation
sole "church." The LLC passes thru its income to the
corporation sole, so it owes no taxes. The corporation sole
supposedly doesn't have to file any tax returns because it's
a "church."

Some have told me that I should take an "oath of poverty" so
I don't have to pay any personal taxes. Supposedly the
corporation sole can pay all my personal bills for me and
even pay my kids' college tuition.

They say that all I need to do to organize a corporation
sole church is to believe in God and have a desire to serve
Him. In one case I asked the guy, "But what if I were an
atheist?" He said, "Well, I guess atheism is a religion too,
so that would be OK." "So Who then would I be serving?" No
response. They all seem to be in agreement that the
government can't define what a church is so, therefore, they
get to define "church" pretty much any way they want to.
Somehow that just doesn't make sense to me.

I've only found one web site that gives any contrary
information on the corporation sole and it's at
http://hushmoney.org/corporation-sole_myths.htm

All the other web sites seem very positive and upbeat about
the corporation sole. But I'm concerned that not everything
I've been told by the corporation sole salespeople may be
true, and that if I use the corporation sole it might get me
into serious trouble with the IRS.

Do you folks have any knowledge of the corporation sole,
what it can be legitimately used for, and what the tax
consequences of it are?

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