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CPA Firms That Referred Clients to Alliantgroup Have Been Subpoenaed, Asked to Turn Over 11 Years of Client Data

On May 20 the Houston headquarters of R&D tax credit consulting firm Alliantgroup was raided by the IRS, in the weeks since we’ve had plenty of speculation about the whys and we’ve heard countless accounts from current and former Alliantgroup employees about the “evil, toxic, and emotionally damaging company” that employed them. We’ve now learned that the government is sending subpoenas to CPA firms that referred clients to Alliantgroup and is seeking client tax returns as part of the investigation.

Going Concern has reviewed a letter from one CPA firm to clients that received services from Alliantgroup advising these clients that the firm has received a federal grand jury subpoena seeking information relating to Alliantgroup. The government’s demand for information is “broad” and includes tax returns and related information in the firm’s possession for clients who received services from Alliantgroup. The government’s demand references R&D tax credits, cost segregation, and IRC Sec 179D and any related information from January 1, 2011 to present.

Clients are assured the firm believes the focus of the grand jury proceedings is strictly related to Alliantgroup, not the clients. The letter states in explicit terms that the firm has no reason to question prior tax credits and/or deductions clients took as a result of their relationship with Alliantgroup at this time. The letter does advise however that clients are welcome to consult with their own attorneys to better understand their rights in this legal matter.

The firm’s counsel is handling the subpoena response and as yet, no data has been provided to the government.

It was speculated earlier that the May IRS raid was connected to a lawsuit filed against Alliantgroup in 2019 regarding 179D tax deductions however that particular lawsuit had been resolved.

We aren’t sure how many firms have received subpoenas nor how many clients are impacted by this data request, though we’re told that this particular firm did refer many clients to Alliantgroup as “the clients were always happy” with Alliantgroup’s tax credit services per our tipster. According to Alliantgroup’s website, they serve “more than 4,000 CPA firms nationwide.” The friendly chat bot that appears when you visit the site cheerfully informs visitors “27,000 businesses have claimed over $16 billion with alliantgroup 💵.” Emoji theirs.

Anyone with more information on the Alliantgroup raid and/or federal investigation is encouraged to reach out to us at any time, tipsters are always and forever anonymous (and appreciated).

Related articles:

The IRS Is Paying an Unwelcome Visit to Alliantgroup
Former and Current Alliantgroup Employees Speak Out About ‘Evil, Toxic, Emotionally Damaging Company’
Alliantgroup Is Considering Retention Bonuses to Keep People From Fleeing
We Could Soon Know the Results (If Any) of the Feds’ Raid of Alliantgroup

3 thoughts on “CPA Firms That Referred Clients to Alliantgroup Have Been Subpoenaed, Asked to Turn Over 11 Years of Client Data

  1. Well, giving away all of your data is not that easy. Firms have many ongoing processes that they may not to disclose that soon. These investigations always drives me crazy. Let’s see what happens next.

  2. Why would the IRS need tax returns, and why would CPAs (vs their clients) have to provide tax returns? One would think that the IRS would have the tax returns.

    I guess that it is easier for the CPA firms to waste their time vs the IRS?

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