Authorities Prosecuting Promoters of "Corporations Sole" Scams

Today's Arizona Republic reports on efforts of federal and state law enforcement to prosecute promoters of "corporations sole" scams-- the use by individuals for tax evasion purposes of entities intended for church assets. A corporation sole, permitted under the laws of 17 states, is legitimately created by an individual church leader in order to provide an entity to hold church property and funds. A corporation sole does not need to file an income tax return. Promoters have bilked many individuals who have no connection to a church by charging them high fees to set up a corporation sole for their personal assets. The promoters incorrectly tell the individuals that this excuses them from paying income taxes.