Feds Seek to Shut Down Montana-Based Timeshare Tax Scheme
The U.S. Justice Department is seeking an injunction to stop a Montana attorney and others from operating or promoting a program that appears to facilitate the donation of timeshares to charities, but actually led its customers to commit tax fraud and donated very little to charity.
The U.S. Attorney's office filed the complaint in U.S. District Court in Butte on Monday against James Tarpey of Bozeman, two of his companies and three people who did appraisals for Donate for a Cause.
The IRS alleges Tarpey's operation promotes donating unwanted timeshares to charity in exchange for a tax write-off. However, federal prosecutors say the program charges thousands in processing fees and appraisers tied to Tarpey's companies significantly overvalue the timeshares, leading the sellers to claim improper tax deductions. The timeshares are often sold for pennies on the dollar.