Bogus home bank busted

May 2, 2007

A Washington state man set up a "bank" in his
suburban home for folks who specifically wanted to evade taxes.

That’s the charge against Robert Arant, whom IRS investigators say took in at least $28 million from people throughout the United States who wanted accounts they could conceal from the tax agency. Or, as Arant reportedly advertised, his financial services were for those "who would rather not deal directly with the banking system."

According to news reports (such as this Associated Press story on the WTOP radio Web site), Arant pooled his customers’ money it in six accounts at Bank
of America, U.S. Bank and Wells Fargo Bank. The IRS calls these arrangements "warehouse banks," and routinely takes down such operations. Examples of prosecution of these scams can be found in IRS  releases on "Nonfiler Enforcement Investigations" for 2005 (a large-scale — 900 customers/$186 million — scheme in Portland, Ore.) and 2006 (involving infamous tax protester Irwin Schiff).

In this latest case, for a fee of $75 a year, Arant allegedly kept his clients’ identities secret and paid their bills from the commercial bank
accounts. He also collected account set-up fees, according to court records, as well as charged for wire transfers and debit cards that his clients  could use to more easily access their money.

The agent in charge of the investigation told the media that she has been able to identify 13 people
who used Arant’s service while underreporting or not reporting their
incomes from 2002, when his "bank" opened, to 2005.

At_the_bank_2

And just in case anyone needs some clarification on this matter, the photo above is a bank. The one below is a residential living room, not a bank.

Living_room_2

Bank day on the ol’ blog: Guess my account fee issue with my real bank isn’t such a big deal in the grand scheme of things.

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We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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