The Internal Revenue Service’s (IRS) General Crimes Unit recently conducted an investigation of a tax preparation professional accused of using her client’s information to perpetuate a fraudulent tax scheme. The agency accused the tax professional of filing false tax returns and stealing the identities of former clients for her own financial gain. The prosecution claimed she stole "tens of thousands of dollars" by filing returns that should have belonged to former clients.
IRS accuses tax preparation professional of using tax business to steal identities
The IRS accused the tax preparation professional of using her own business to propagate the tax fraud scheme. The government stated the business owner used her business from 2010 through 2014 to gather information from client’s income tax returns. The investigative team stated the business owner used this information to file fraudulent returns.
The prosecution has also accused the business owner of using stolen identities of minors to fraudulently claim dependents on client’s tax returns. The tax preparation professional would then allegedly charge clients an additional fee for this information. In exchange for this fee, the prosecution claimed the tax preparation professional would promise the clients illegally inflated tax refunds.
Jury convicts tax preparer
The tax preparation professional denied the allegations. The parties litigated the matter. After a two-and-a-half-week jury trial, the tax professional was convicted of twelve criminal charges including aiding and assisting the preparation of false tax returns. These charges come with up to three years imprisonment for each individual charge. Additional charges for aggravated identity theft, subscribing to false tax returns and theft of government funds could result in an additional 18 years imprisonment.
The conviction shows the serious penalties that can come with allegations of wrongdoing in tax preparation matters. Those who face similar allegations are wise to seek legal counsel. An attorney experienced in these matters can review your case and help build a defense to the allegations.