1970s Tax Scam Records: Why These Vinyl Albums Became Collectibles

By Eric Strand · October 2, 2026

Found an unfamiliar LP, or wondering why a record supposedly made to lose money could interest collectors? Start with the album’s documented history, then identify the actual copy in front of you.

What were 1970s tax scam records?

In collector Aaron Milenski’s account, labels such as Tiger Lily and Guinness issued albums with little effort to sell them, while losses were central to the operation. Material could include demos, shelved sessions and recordings repackaged under different names.

That explanation should not become a blanket verdict. Numero Group’s historical feature also discusses recording-investment tax shelters and questions about inflated valuations. These accounts describe related practices, not one proven business arrangement shared by every obscure label. A collector nickname is not a court finding.

The subject received fresh coverage in a Grunge article published October 1, 2026. Its collector-interest angle is a useful starting point, but a headline about valuable records is not an appraisal of your copy.

Examples behind the collector stories

Stonewall — Tiger Lily

In a 2017 interview with It’s Psychedelic Baby Magazine, drummer Anthony Assalti said Tiger Lily released Stonewall’s recordings without the band’s knowledge or permission. The magazine identifies the LP as a 1976 release. Assalti said he learned about it later through collectors and did not know the pressing quantity. That firsthand account supports the unauthorized-release story, without establishing an exact surviving-copy count.

Almost Famous — Baby Grand

Numero Group recounts how Richard Goldman discovered in 1981 that his recordings had appeared on a 1977 Baby Grand album credited to Almost Famous. According to that account, the release omitted his name and changed song titles and credits. His experience shows why the name printed on a sleeve may not tell the full artist story.

Snowball — Guinness

Milenski reported contacting Richie Zito and Joey Carbone, who were surprised that their Snowball recordings had been released. This is another reason to distinguish the musicians who made the music from the businesses that issued it.

Why did some of these vinyl albums become collectibles?

The appeal combines scarce surviving copies, music that listeners missed at the time, and the detective work of reconstructing an album’s history. Grunge’s recent feature describes that unexpected second life.

For a buyer, those are three separate questions: Do you enjoy the music? Can you establish which pressing this is? Is the asking price supported by comparable sales? A fascinating answer to the first two does not settle the third.

How to check an original pressing versus a reissue

Use Discogs’ record-identification guide to gather the details, then compare the exact release rather than just the album title:

1. Photograph both center labels and the sleeve. Record the label name, catalog number, track listing and printed credits.
2. Read the runout markings. These are the letters or numbers etched or stamped near the center of the disc, beyond the music grooves. Record both sides accurately.
3. Compare all the details together. Artwork, credits and manufacturing information can help distinguish editions. One matching detail is not conclusive authentication.
4. Ask the seller to identify the edition. Request photographs of the actual copy and an explanation of any “original pressing” claim.

If you mainly want to hear the music, consider a clearly identified, authorized reissue. If you want a period collectible, resolve the pressing question before paying a premium.

How to check value without chasing a headline

Discogs sales history shows completed transactions for a particular release. Use that as a starting point, then compare the record and sleeve condition, included inserts, and how recently comparable copies sold.

An active listing shows what someone hopes to receive. An isolated high sale does not establish a repeatable price for every copy. If comparable sales are scarce, describe the value as uncertain instead of treating the highest number as a guaranteed payout.

More music-business history: Our Columbia House guide explains the penny-CD offer and subscription billing. It covers a separate business model and consumer experience; the connection here is music-industry history, not participation in these tax-shelter operations.

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