Xélan Clients: Call Your Tax Attorney

symtym has an excellent review of the collapse of a financial investment company called Xélan, which markets itself to physycians.

A brief quote:

WASHINGTON — A judge ordered more than $500 million in investment accounts frozen as the Justice Department probes charges of tax avoidance involving a company that markets tax-savings plans to doctors.

The Internal Revenue Service estimates that some 4,000 doctors are involved in what it called a fraudulent tax-reduction scheme, and they could owe as much as $420 million in taxes plus interest and penalties, Justice Department officials said. That works out to more than $100,000 per taxpayer.

Like nearly every doctor, I have gotten dozens of very slick solicitations from Xélan in the mail asking me to ‘come to a seminar, and learn how to save money’, etc. I know a doc or two who use their services, and hope they’re in the clear on this.

As a general rule, I am very leery of ‘sounds too goo to be true’, especially when it comes to tax avoidance schemes. Now I know why.

Go and read symtym’s entry, it’s very well done.