Fraudulent Tax Returns Surge 181%

According to reports, the number of taxpayers attempting to claim inflated refunds was on the rise. When the economy falters people start looking for more cash. And that means more people are willing to “push it” on their taxes. Good luck, when the audits start rolling in.

From Yahoo Finance:

The IRS identified 335,341 tax returns claiming $1.9 billion in fraudulent refunds as of March 4, 2011, according to the findings of an audit conducted by the Treasury Inspector General for Tax Administration. That's a whopping 181% increase from the same period last year.

While the IRS has become more effective in its screening process, a weak economy has also driven more people to cut corners, said Tim Gagnon, assistant academic specialist of Accounting at Northeastern University.

"When the economy gets really bad, people get more touchy about how much they're paying in taxes and look at where they think they can push the envelope a little more," said Gagnon. "100 extra dollars really makes a difference to people now."

Many taxpayers tried to boost their refunds or reduce their tax liability by claiming deductions and credits they didn't qualify for, TIGTA found.

For example, the Earned Income Tax Credit, aimed at helping lower-income taxpayers, has been a large source of fraud, with people falsely lowering their income to qualify or claiming children they don't have. The IRS estimates that 23% to 28% of EITC credits are wrongfully paid to Americans every year, totaling $11 to $13 billion.

More here

IRS Agent Among 14 Charged with Tax Credit Fraud

According to US Attorney Carmen M. Ortiz, fourteen people were charged with tax fraud for using the first-time homebuyers credit to steal money from the federal government. Is it just me, or will this not do much to help the IRS’s image?

Boston.com reports:

One of those charged is a long-time IRS agent, Michael Doyle, of New Hampshire. He allegedly falsely claimed that he bought a home in 2008 to qualify for the credit, but actually purchased the property in 2007, Ortiz's office said. Doyle, 44, could not immediately be reached for comment, and an IRS official could not say whether Doyle still works for the federal agency.

Two other defendants, Junior Lopez of Southbridge, and Christopher Proe of Michigan, allegedly filed more than 50 fraudulent tax returns, receiving about $500,000 in refunds, prosecutors said. Proe and Lopez also could not immediately be reached for comment.

"It is critically important that taxpayers who play by the rules do not end up paying for refunds to people who commit fraud and blatantly lie on the forms submitted to the IRS,'' Ortiz said in a prepared statement.

J. Russell George, the Treasury's inspector general for tax administration, said it is "especially troubling" when an IRS agent is implicated in a fraud case. "Congress created and modified the home buyer credit to stimulate and help taxpayers achieve the America Dream, not to line the pockets of wrongdoers,'' George said.

More here

Ex-Inmate Pleads Guilty to Tax Fraud

A former inmate from Tennessee pleaded guilty yesterday to defrauding the federal government of $58,651.80 by filing false tax returns claiming refunds. Finally, the government taking action against the rampant inmate tax fraud problem!

Times Free Press reports:

Walter Allen “Beau” Johnson had been charged with conspiracy to defraud the federal government by filing false claims as well as 11 counts of filing false claims against the United States, according to a joint news release from the agencies. A sentencing date has not been set. He could up to 65 years in prison and maximum fines of $3 million, officials said.

According to charging documents, the actions took place while Johnson was incarcerated in state prison from February 2006 to January 2007. Officials said Johnson and other inmates he recruited collected Social Security numbers from fellow inmates. He and “co-conspirators” then used the numbers to file false income tax returns with the IRS in the name of the inmates, claiming refunds to which they were not entitled, officials said. An estimated 88 false returns were filed.

The case is being prosecuted by Tax Division trial attorneys Michelle M. Petersen and Kathryn B. Ward. The case was investigated by the IRS-Criminal Investigation Division.

Read more here

Labor Dept. Estimates $7.1 Billion in Overpayments to Unemployed

Although headlines are focusing on the thousands of Americans that are losing, or have lost their unemployment benefits, the U.S. Labor Department is reporting over $7 billion in overpayment to the unemployed. As this story from ABC News explains, the total amount of unemployment benefits paid in 2009 was $76.8 billion, compared to $41.6 billion in 2008.

Fraud accounted for $1.55 billion in estimated overpayments last year, while errors by state agencies were blamed for $2.27 billion, according to the Labor Department. The department's final report will be released next month.

Some of the overpayments likely can be traced back to the overwhelming workloads facing state employment agencies during the recession, said George Wentworth, a policy analyst for the National Employment Law Project.

"You've got a system that's been under siege like the unemployment insurance system has been for the last two years," Wentworth said. "You've got a lot of new staff coming into the system; there's been a lot of federal extensions [to unemployment insurance benefits] that have had to be programmed in and so on. There's just been a lot of change that states have had to handle. ... I just think the volume and the new staff have made the systems more susceptible to error."

Continue reading at ABC News.com…

Ex-Detroit Mayor Indicted on Fraud, Tax Charges

From the Associated Press:

A prominent Detroit pastor says the indictment of former Mayor Kwame Kilpatrick is another chapter in a "sad saga" that has gone on too long.

Kilpatrick was charged Wednesday with fraud and tax crimes. Federal prosecutors accuse him of enriching himself and others by milking $640,000 from a tax-exempt charity that he created as a way to enhance Detroit and improve the city's image.

The indictment says Kilpatrick used the funds to pay for yoga, golf, camp for his kids, travel, a video about his family, cars, political polling and much more. Defense lawyer James Thomas says he'll fight the charges.

The Rev. Horace Sheffield says the Kilpatrick "story needs to end." The former mayor is in state prison in an unrelated criminal case.

10 Tax Preparers Plead Guilty of IRS Fraud

A scheme to file false tax returns yielded millions of IRS dollars before the tax return preparers involved were caught and convicted. Here’s the scoop:

In an elaborate scheme to file false returns, operators of two tax preparation businesses (Seguros Internacionales and Poz Servicios Para Hispanos) in North Carolina defrauded the IRS of about $13 million between 2006 and 2009. Within these three years, the ten preparers made approximately 10,000 filings of income tax returns that sought more than $22 million in refunds. The IRS paid approximately $13 million of the fraudulently claimed refunds before investigators caught on to the scheme! The two businesses are no longer in operation.

The preparers plead guilty to charges of mail fraud and illegal entry into the U.S. All of them are facing a lengthy prison term of anywhere between 5 and 20 years, and of course, will then be deported to their country of origin after they have served their jail term. It turns out, federal agents arrested even more people in connection with this tax scheme last week—all in all, it is believed that about 20 people were involved.

The IRS has made it clear they are increasing enforcement efforts and are working closely with the Justice Department to increase legal actions against dishonest tax return preparers. The IRS has used investigative measures such as having agents pose as taxpayers to seek out and stop dishonest preparers from filing inaccurate returns. The IRS claims to have conducted 230 undercover visits to various tax return preparers and as a result, dozens of search warrants have been issued.

The IRS is not messing around. The IRS warns it will continue civil and criminal action as appropriate. The increased efforts will ultimately make a difference for taxpayers nationwide and will help protect the many tax professionals who play by the rules.
In January, the IRS has proposed new regulations regarding the registration, testing and continuing education of tax return preparers. You can see the press release here:

Let me end by saying, it is not only the responsibility of the tax preparer but also a responsibility of the taxpayer to choose carefully when hiring a tax professional.

The full article, "10 Illegal Immigrants Plead Guilty of Tax Fraud” can be found here.

IRS Suspends Tax Practitioner for Preparing False Tax Returns

Last week, the IRS published a new press release announcing that, “a Certified Public Accountant has been suspended for twelve months from practice before the Internal Revenue Service by the Office of Professional Responsibility for providing false or misleading information in connection with the preparation of his clients’ tax returns.”

“Practitioners have a duty both to their clients and to the system to insure taxpayers are complying with tax laws and filing complete and accurate tax returns,” Karen L. Hawkins, Director of the Office of Professional Responsibility said.

Robert A. Loeser, a certified public accountant from Houston, Texas, assisted his clients to lower their tax bills by claiming false business expenses on tax returns he prepared.

For no legitimate business purpose, Loeser’s clients were advised to forward funds from their businesses to two corporations Loeser controlled. The corporations then rebated the funds to his clients. Loeser prepared the clients’ books and business tax returns expensing and deducting the entire amounts that were paid to the corporations.

The IRS alleged Loeser violated Circular 230 by giving false or misleading information to the Department of Treasury and the IRS.

Feds Sue Colorado Tax Preparer, Alleging $55M in Bogus Refund Claims

From Bizjournals.com:

The U.S. Justice Department has sued a Colorado tax preparer, alleging he made at least 141 claims for fraudulent refunds for clients totaling more than $55 million.

In the civil complaint filed Tuesday in U.S. District Court in Denver, federal authorities seek an injunction barring Curtis L. Morris of Elizabeth, and his company, Numbers and Beyond, from preparing and filing tax returns.

Morris has not been charged with a crime.

According to the complaint, Morris filed fraudulent refund claims on behalf of clients in Colorado, California, Arizona, and New Mexico in 2008 and 2009.

It says the returns Morris prepared for the customers "fabricate the amount of federal income tax withheld," and that he sometimes filed false Forms 1099-OID with the IRS to support fraudulent claims.

"In reality, Morris' scheme fraudulently reports that tax was withheld on behalf of his customers and then claims refunds based on that non-existent withholding," the complaint said.

One bogus refund request totaled $1.7 million, the complaint says. Officials said the IRS issued $1.9 million in erroneous refunds as a result of Morris' filings.

The 5 Biggest Celebrity Tax Scandals of 2009

So far in 2009 there have already been a dozen or so celebrities who have made headlines for their tax problems. I have covered a couple of them on my blog so far, but since there have been so many I wanted to put together a list of the biggest celebrity tax scandals. The individuals listed below may be rich and famous, but that does not mean anything to the Federal government. If you do not pay your taxes then the IRS will come after you, even if you are a celebrity.

5. David Brenner

Best known for his stand up comedy, Brenner is also and established author, actor, and filmmaker. He has made over a hundred television documentaries, one of which was even honored with an Emmy award. Brenner also holds the record for the most appearances on "The Tonight Show", with over 158 in his career. Currently, he is working on a new comedy website that will reportedly be known as The Funny Deli.

Earlier this year it was announced that Brenner owed the IRS over $68,222 in unpaid tax liabilities. Although he avoids discussing his finances in interviews, public records show that Brenner filed Chapter 7 bankruptcy in 2004, listing more than $1.73 million in liabilities and only $78,324 in assets. Unfortunately that did not seem to fix his financial troubles, as the IRS filed a lien against his property on June 25^th of this year. Reports claim that Brenner has already negotiated an Installment Agreement with the IRS to repay his debts through monthly payments. For more information on IRS Installment Agreements, check out this page on my law firm’s website.

4. Stephen Baldwin

Nearly everyone in the country has heard of the famous Baldwin brothers. Nearly all four siblings work in the entertainment industry and Stephen is no exception. He first showed interest in entertainment while attending high school where he was active in choir and theater. Although he starred in films such as "The Beast of War", his first break-through role was in the 1995 hit movie "Usual Suspects”. Recently, he appeared in a handful of reality shows including "Celebrity Apprentice" and “I’m a Celebrity … Get Me Out of Here.”

Although he has been on a number of shows over the past few years, Stephen and his wife Kennya were forced to file chapter 11 bankruptcy earlier this year. In addition to millions of dollars in mortgage debt, the couple also owes the IRS a reported $749,974 in Federal tax debts stretching from 1999 to 2008. Their filing also cited another $194,527 in state tax debts owed to New York.

3. Sinbad

Although Sinbad was once a popular comic, these days his financial troubles are getting more attention than his comedy. Since the beginning of his career in the early 80’s, Sinbad has appeared in several motion pictures including "Jingle All The Way" and "The First Kid." Unfortunately, he has not had a hit project in nearly a decade.

In 2007, it was announced that Sinbad topped California’s list of delinquent taxpayers, with a state tax debt totaling over $2.1 million. At that time it was reported that the debts dated back to 1993. Two years later, Sinbad has apparently still has not settled his tax problems. He once again made California’s list of the top 10 delinquent taxpayers, but this time it is reported that he now owes the state over $2.5 million.

2. Chris Tucker

Comedian and actor Chris Tucker became famous in the early 1990’s because of films such as "Friday,” "The Fifth Element," "House Party 3" "Money Talks," and the “Rush Hour” trilogy. In fact, for the third Rush Hour movie, Tucker was reportedly paid over $20 million, something only a few elite actors can claim. In addition to his films, Tucker is also known for being friends with other celebrities including Bill Clinton, Jackie Chan, and the late Michael Jackson.

Considering the fact that Tucker earned millions of dollars in the past decade, it surprised me to learn that he owes the State of California nearly $3.6 million in unpaid taxes. The state recently slapped Tucker with a lien for the debts stemming from the years 2001-2002 and 2004-2007. Unfortunately, little is known as to the reason for his tax delinquency since his publicist has refused to make any statements on the issue.

1. Nicolas Cage

Nicolas Cage took the number one spot on my list of the 5 biggest celebrity tax scandals for a number of reasons. First of all, he is probably one of the most famous actors to wind up in trouble with the IRS. He has appeared in dozens of hit movies including “Moonstruck" and "Lord of War", Ghost Rider." Most recently he was seen in the "National Treasure" films, which ironically featured a character that had to go back to work because of IRS tax debts.

Just a few weeks ago, the IRS issued a lien against Cage in the in Orleans District Court in Louisiana. The lien cited delinquent IRS tax liabilities from 2007 totaling over $6.2 million, which is higher than any other celebrity on my list. The address listed on the lien is Cage’s $3.55 million haunted mansion in New Orleans, which was initially built for French royalty. Unfortunately, Cage has not spoken out regarding his debt, so there are no details on whether he has attempted to settle with the IRS or not.

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Former Rabbi Charged in $35M Tax Fraud Scheme

From Web CPA:

A former Chicago rabbi and nine others were charged in a $35 million tax fraud conspiracy, accused of filing 3,300 false tax returns in the names of federal prison inmates.

Marvin Berkowitz, 62, who had moved to Israel in 2003 to avoid earlier tax fraud charges, was arrested in Jerusalem, while two of his sons and a son-in-law were detained in Chicago and Los Angeles. They and six other defendants were charged in the scheme to file the phony refund claims, causing the IRS to issue refunds totaling more than $1.5 million, while various states issued tax refunds totaling more than $2.5 million. Berkowitz directed the fraud ring from Jerusalem and allegedly caused at least $800,000 in tax refunds to be paid to, or for the benefit of, at least eight members of his family, according to prosecutors.

The 10 defendants were charged by a Chicago grand jury in a 41-count indictment that was returned in February and unsealed Monday. The indictment remained sealed since February to coordinate the investigation and arrests with Israel.

Fraudulent First-Time Homebuyer Credit Leads to Prosecution

As I have mentioned before, the IRS has been aggressive in going after people who are falsely claiming the first-time homebuyer credit. In fact, yesterday they announced their first successful prosecution related to the fraud. They are hoping that in doing so they can send out a warning message to taxpayers across the country.

According to the IRS, on Thursday July 23, 2009, a Jacksonville, Fla.-tax preparer, James Otto Price III, pled guilty to falsely claiming the first-time homebuyer credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.

To date, the IRS has executed seven search warrants and currently has 24 open criminal investigations in pursuit of potential instances of fraud involving the credit. The agency has a number of sophisticated computer screening tools to quickly identify returns that may contain fraudulent claims for the first-time homebuyer credit.

“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.”

Whether a taxpayer prepares his or her own return or uses the services of a paid preparer, it is the taxpayer who is ultimately responsible for the accuracy of the return. Fraudulent returns may result not only in the required payment of back taxes but also in penalties and interest.

Fraudulent Homebuyer Tax Credits Being Eyed by the IRS, Fines “Steep”

From Inman News:

The Internal Revenue Service says a Jacksonville, Fla.-based tax preparer is the first to be convicted of fraud related to the federal first-time homebuyer tax credit.

James Otto Price III, 47, pleaded guilty on July 23 to falsely claiming the first-time homebuyer credit on a client’s federal tax return, the IRS said. He faces up to three years in jail and a fine of up to $250,000 when he is sentenced.

Price was indicted in May on 35 tax-fraud counts, including 15 involving the first-time homebuyer tax credit, The Florida Times-Union reported. Most of Price's clients were unaware he was claiming the credit on their behalf and paying himself a $1,000 fee from their electronic refunds, a prosecutor told the paper.

In announcing Price's conviction, the IRS claimed to have "a number of sophisticated computer screening tools" to identify tax returns that may contain fraudulent claims for the tax credit. The IRS says it has executed seven search warrants and currently has 24 open criminal investigations of potential instances of fraud involving the credit.

Guilty Plea in Tax Shelter Fraud

From the New York Times.com:

A former vice chairman of the accounting firm BDO Seidman pleaded guilty on Wednesday to federal charges that he helped clients evade more than $200 million in taxes through illegal tax shelters.

The executive, Charles W. Bee Jr., and another executive, working with the law firm Jenkens & Gilchrist, sold illegal shelters to wealthy clients, said Lev Dassin, acting United States attorney.

Mr. Dassin said Mr. Bee knew that the transactions would be disallowed by the Internal Revenue Service.

Adam Abensohn, a lawyer for Mr. Bee, declined to comment. Mr. Bee, 63, agreed to forfeit $20 million and two homes. He faces up to 15 years in prison on three fraud counts, prosecutors said.

BDO Seidman said in a statement that the tax shelter group was dissolved several years ago.

NY Tax Worker Accused Of Stealing Ids, $200K

A former NY tax worker has been accused of stealing identities, and making $200,000 in fraudulent charges, reports Forbes.com via The Associated Press. You can find a segment of the story below, but the full text can be found here.

A former New York state tax department worker is accused of stealing the identities of taxpayers and running up more than $200,000 in fraudulent charges on their accounts.

Prosecutors say the confidential information gathered by Walter Healey included credit card and Social Security numbers. The illicit charges are dated between 2006 and 2008.

Healey faces four counts of identity theft, as well as unlawful possession of personal identification, tampering with public records and misconduct charges.

The 63-year-old Troy resident, who says he's retired and last worked in October, pleaded not guilty Wednesday. He and his lawyer, George LaMarche (La-marsh), declined further comment. A judge set bail at $5,000.

IRS Agent Pleads Guilty In Tax Fraud

From The Los Angeles Times:

An IRS agent whose job entailed conducting audits of taxpayers agreed to plead guilty Monday to a federal charge of cheating on his own taxes, authorities said.

Jim H. Liu, 43, of Diamond Bar signed court papers admitting that he filed a false tax return for 2002 that cheated the government out of nearly $15,000, according to the U.S. attorney's office in Los Angeles.

According to a plea agreement filed in U.S. District Court in Santa Ana, Liu sold a property in Pomona for a profit of more than $48,000 that year. But he claimed on his taxes that the transaction resulted in a loss of $4,200.

Liu agreed to plead guilty to a tax fraud charge that carries a penalty of up to three years in federal prison.

He also promised to file an amended tax return for 2002 and agreed to pay $36,000 in unpaid taxes, penalties and restitution, according to the plea agreement.

"This case serves as a reminder that tax laws apply to all people," said Assistant U.S. Atty. Bayron T. Gilchrist, who prosecuted the case.

"It's especially egregious when you have somebody who's supposed to enforce those laws who instead willfully violates them."

Some of the wording in the plea agreement reinforced the notion that, despite his employment with the IRS, Liu was being treated like just another taxpayer. For example, it reminded Liu that nothing in the agreement prevented the IRS from further scrutinizing his amended return after it was filed.

Neither Liu nor his attorney could be reached for comment. His job status with the IRS was not immediately available.

Ethics Panel Expands Rangel Investigation

From the Associated Press:

The House ethics committee is expanding an investigation of Rep. Charles Rangel, chairman of the tax-writing Ways and Means Committee. The ethics panel issued a statement Tuesday saying it had voted to expand an already far-ranging probe into the New York Democrat to examine whether he protected an oil drilling company from a big tax bill when the head of that company pledged a $1 million donation to a college center named after the congressman.

The move means the Rangel inquiry will likely stretch well past early January, when House Speaker Nancy Pelosi, D-Calif., had previously said she expected the matter to be resolved.

Republicans have called for Rangel to step down from his chairmanship of the powerful Ways and Means panel during the investigation. The expanding investigation means the ethics cloud hanging over Rangel is likely to follow him and Democratic leaders into the next Congress as they seek to pass major stimulus legislation and buoy the sinking economy.

The committee will now investigate contributions or pledges of money made to the Charles B. Rangel Center for Public Service at the City College of New York, particularly one made by Eugene M. Isenberg, CEO of Nabors Industries, Ltd.

Rangel, 78, reportedly helped preserve a tax loophole that saved the company tens of millions of dollars a year.

The congressman, who has been in office for 40 years, maintains he has done nothing improper, and he says he has always opposed the kind of change to tax law that would have cost Nabors dearly.

The ethics committee said it was expanding the probe after Rangel asked them to do so.

The committee has already been probing Rangel's failure to pay taxes on about $75,000 in rental income from a beach house he owns in the Dominican Republic. They are also eyeing his use of three rent-stabilized apartments in Harlem, including one for a campaign office. Also under scrutiny are letters Rangel wrote on congressional stationery looking to drum up donors for the college center.

College officials have refused to say who donated to the Rangel center, citing the ongoing investigation.

Rangel has insisted that whatever he did wrong, they were honest mistakes, not intentional deceptions.

Ditch Charlie

From NY Post.com:

Are congressional Democrats truly committed to dealing with the economic and fiscal policy challenges they face next year?

The answer will be seen in how they address their increasingly problematic Charlie Rangel situation.

Scarcely a day goes by without yet another ethical impropriety coming to light regarding the chairman of the House Ways & Means Committee.

Last Wednesday, the DC-based National Legal and Policy Center urged the House Ethics Committee to expand its ongoing Rangel probe to include the recent revelation that he took a "homestead" tax deduction meant for year-round DC residents - though he legally resides in New York.

Tuesday, The New York Times delved into the relationship between Rangel and oil-drilling businessman Eugene Isenberg - who made a $1 million pledge toward building Rangel's school for public service at City College of New York. Rangel later preserved a controversial offshore tax loophole that saved Isenberg's company, Nabors, millions.

Rangel's previous ethical woes, though troubling, were largely personal: not paying taxes on property in the Caribbean; using one of four rent-stabilized apartments as a campaign office; improperly storing a car in a House parking garage.

The Isenberg-Nabors deal is, potentially, far more serious: It reeks of a quid pro quo between Rangel's official duties and fund-raising for his personal project.

The Times reported that Rangel held meetings the same day, at the same hotel, with Isenberg to discuss the CCNY project and then with Nabors' chief lobbyist on the tax loophole.

Another Tax Issue Surfaces for Rangel

From NY Times.com:

Representative Charles B. Rangel’s legal team is reviewing his tax records to determine whether the congressman received a homestead exemption on a house he owned in Washington while living in several rent-stabilized apartments in New York City.

The situation is potentially troublesome for Mr. Rangel, a Harlem Democrat who is already the subject of a wide-ranging internal House investigation stemming from an assortment of ethical concerns.

Rent laws in New York City and the state require that tenants occupying rent-stabilized apartments use those units as their primary residences. At the same time, the District of Columbia’s Office of Tax and Revenue extends the homestead tax deduction only to properties that are primary residences.

The internal review by Mr. Rangel’s legal team was prompted by a report in Sunday’s edition of The New York Post quoting a District of Columbia tax official as saying that Mr. Rangel received a homestead tax exemption for a four-bedroom home he owned in Washington. The official told the newspaper that the congressman received the tax exemptions from 1995 through 2000, when he also had the use of rent-stabilized apartments in his district in Harlem.

In a statement released on Sunday night, Emile Milne, a Rangel spokesman, said: “The New York Post has raised a question about the tax treatment of a property the Rangels once owned. The property was sold more than eight years ago and we have asked Congressman Rangel’s accountant to retrieve the records about it.”

Charles Rangel Uses Campaign Funds for Legal Muscle in Tax Mess

From the Boston Herald:

A newspaper says New York Rep. Charles Rangel paid more than $100,000 in campaign funds to a law firm to represent him as he continues to face ethical questions over his tax records.

The New York Post reported Sunday that the powerful chairman of the tax-writing House Ways and Means Committee had hired the law firm though his Rangel for Congress fund.

Federal election rules prohibit elected officials from using campaign funds for personal legal expenses.

Rangel spokesman George Dalley said the congressman had a "prior ruling" from the Federal Election Commission that "this is a legitimate campaign expense."

But the chairman of an ethics-watchdog group was skeptical. National Legal and Policy Center chairman Ken Boehm said the questions Rangel faces over his taxes appear to be personal in nature.