Jonestown man gets 5 years in tax scheme

A Jonestown man was sentenced to five years in federal prison for helping business owners conceal more than $27 million in income from the IRS through an abusive tax shelter.

Aanand Shukla pleaded guilty March 10 to one count of conspiracy to defraud the United States, according to the U.S. Department of Justice. He was sentenced this week to 60 months in prison.

Federal prosecutors said Shukla and his co-conspirators promoted, sold and personally used a fraudulent trust-based tax shelter from 2017 through 2025.

The operation targeted business owners nationwide and promised they could “own nothing, control everything” while avoiding taxes on nearly all business income, according to court documents cited by the Justice Department.

Clients were quoted fees as high as $225,000 to participate in the arrangement. Shukla typically sold trust packages for $25,000 to $55,000, prosecutors said.

The Justice Department said Shukla instructed clients to restructure their companies so about 98% of their business income flowed through layered trusts and a private family foundation.

Clients were then instructed to use trust accounts for personal expenses, including vehicles, entertainment and mortgage payments. Those expenses were claimed as tax deductions, according to prosecutors.

Shukla created trust documents, trained other promoters and referred clients to tax preparers he selected and knew would participate in the scheme, the Justice Department said.

Prosecutors said Shukla marketed the tax shelter nationwide through seminars, webinars, podcasts and direct sales presentations.

The scheme helped conceal more than $27 million in income from the IRS, according to the Justice Department.

The case was investigated by IRS Criminal Investigation. Prosecutors with the Justice Department’s National Fraud Enforcement Division Tax Section handled the case.