While private wealth clients were busy paying fat fees to their favorite Swiss bankers to figure out ways to dodge the tax man, clients at Topeka-based Renaissance were getting tax fraud plans straight from the crew at the IRS. A former IRS district director, Jesse Ayala Cota, will be spending the next two years behind bars for helping clients cheat his former employer.
Owners of home-based businesses who paid to become members of Renaissance received services including tax preparation, tax advice and so-called "audit protection." The "Tax Advantage System" offered by Renaissance was based on claims that business owners could legally reduce the taxes they paid by converting their personal expenses into business deductions. Cota and other defendants assured Renaissance clients that the tax reduction methods were legal, even though the tax returns filed using Renaissance's methods were based on providing fraudulent information to the IRS.
See- the gap between Wall Street and Main Street isn't really that big after all.