Tax Talk

Scheming Consultant Takes a Gamble by Filing False Tax Returns for Native American Tribe, Gets Indicted

Beau Wesley Gensmer has been indicted for wire fraud and for filing false tax returns on behalf of members of the Shakopee Mdewakanton Sioux Community, a Native American tribe that owns Mystic Lake and two casinos outside of Minneapolis. From 2014 to 2018, Gensmer, who owned a consulting company, convinced tribal members to hire him to assist in the preparation and filing of their tax returns. He then hired an Alaskan tax preparer to prepare and file the tax returns based on false information her provided to her.

According to the indictment, Gensmer's scheme involved claiming fraudulent business losses and charitable contributions and resulted in tax refunds averaging more than $100,000 for each client. Gensmer then received approximately 30% of each inflated tax refund. He caused a tax loss to the IRS of more than 1.5 million dollars.

If convicted, Gensmer faces a maximum penalty of 20 years in prison for each count of wire fraud, three years for each false tax return charge, and restitution.

If you do not qualify for the OIC, then you may consider a payment plan, which, if properly structured, allows you to pay off your debt over time by making manageable monthly payments, much like a commercial installment loan.

Mark Diehl is the founder and president of Diehl CPA LLC and a Certified Public Accountant licensed in Alaska. He has a Bachelor of Science and a Master of Science degree in Accounting from Western Governors University. Mark has previously worked with the Minnesota Department of Revenue as a tax auditor, so he knows the audit process very well. Diehl CPA is Alaska's expert in Tax Negotiation and Mediation.