A Nevada man, identified as Michael J. Moore, has pleaded guilty to charges of promoting a fraudulent tax avoidance scheme, according to an announcement from the Department of Justice. Operating out of Las Vegas through his business named X Tax Pros, Moore was involved in a scheme from 2015 through April 2025 that defrauded the IRS. As reported by the Department of Justice, Moore charged significant fees to his clients, promising them he could eliminate their taxes owed and produce sizable refunds by exploiting the "Special Tax Shelter Strategy."
The scheme led clients to believe by paying Moore's fees, derived from the refunds they received, would make their tax woes disappear. This misleading promise entailed preparing fraudulent tax returns making false claims of massive business losses through entities that Moore purportedly controlled. According to the same DOJ press release, these Moore-controlled entities were essentially non-operational – not conducting business, filing returns, sustaining losses, or appropriately reporting the clients as partners. Some clients' returns also contained fabricated figures related to cost of goods sold and royalty expenses.
Moore's unlawful activities caused a sizable dent in the United States treasury, accruing a tax loss of more than $3.5 million. Scheduled for a December 8, 2025 sentencing hearing, Moore might face up to five years in prison. He additionally faces possible supervised release, restitution, and monetary penalties. A federal district court judge will be considering the U.S. Sentencing Guidelines and other statutory factors to determine Moore's final sentence. It is IRS Criminal Investigation who has unraveled the depth of Moore's scheme, diligently piecing together the fraudulent machinations behind the "Special Tax Shelter Strategy."
The case progress has been a collaborative effort between the Justice Department's Tax Division Trial Attorney Patrick Burns and Assistant United States Attorney Tony Lopez for the District of Nevada, as they lead the prosecution. The American tax system, having been wronged by Michael J. Moore, now stands on the verge of seeing justice served, with the tax defrauder awaiting his day of reckoning in court.
