The Internal Revenue Service (IRS) accused an owner and operator of a tax return preparation business of filing fraudulent tax returns.
What are the charges against the tax preparation business owner? The agency alleged the business owner increased unreimbursed job expenses, medical expenses, dental expenses and even created “wholly fictitious” side businesses to increase her clients’ overall refund.
The agency states the owner filed 60 such fraudulent tax returns over a period of time spanning from 2010 through 2014. The IRS estimates the owner defrauded the government of approximately $322,537.00 in fraudulent refunds during this period.
Court documents show a specific example used by the IRS to support their claim. The example involves a taxpayer that sought the tax preparation services of the accused. This taxpayer allegedly claimed a $28,000 business expense. There was no paperwork to support this claim, leading the IRS to state the claim was fraudulent.
What are the penalties for fraudulent returns crimes? Criminal penalties for these types of crimes are serious. In this case, the accused could face up to three years of prison time as well as a monetary fee of $250,000.
The accused plead guilty to the charges and facing sentencing in the United States District Court in the District of New Jersey on August 7, 2018.
What if my tax preparation business is charged with a tax crime? These cases generally begin with contact from the IRS. At this point, it is wise to take action. An attorney experienced in these legal issues can provide counsel. This can include an investigation to gather information about the concerns of the IRS as well as pre-emptive talks with the agency to reduce the risk of criminal prosecution.