U.S. Bankruptcy Court
District of Nevada
Re: Case 03-17306
I originally purchased a membership with the National Audit Defense Network (NADN) in 1999, as a response to a radio advertisement. This Company offered assistance with Tax Audits. I was at the time being audited for a small miscalculation in a W-2 issue. The NADN required a membership fee to utilize its services. They assigned a former IRS auditor who cleared the W-2 Matter in a small amount of time, with my payment of a small tax penalty.
I continued my business with NADN through the next few years, first allowing this company to prepare my taxes and then by purchasing an American Disabilities Act-compliant Internet website shopping mall that would be developed and managed by a California-based company named, Oryan Management. According to the NADN salesperson, this type of website was allowed by the IRS as a tax credit of $5,400.00 per year reduction of my annual tax liability as long as I kept my NADN dues and website monies current.
The first year of this aspect of my business, (I am a website entrepreneur), I received a joint tax return of approximately $5,400.00. We were very pleased with this amount as well as our decision to continue upgrading our website, until I began crunching numbers. My NADN tax advisor had advised us to change the numbers of exemptions on Form W-4 to as much as nine (9) exemptions. I was advised also that this was a legal means of allowing less tax revenue to be taken from paychecks and that this would allow us to keep this money to spend as we chose. Acting upon this advice, I changed my W-4 to five (5) exemptions that year and upgraded my website for the second year. The tax return for that year was significantly lower than the previous year, somewhere in the area of $1500.00 State and Federal filed jointly. I began questioning NADN representatives as to why this was not going the way they had said the website business benefits would. (Contacting anyone with NADN was and still is a very daunting task).
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