The United States Department of Justice’s (DOJ) Tax Division recently announced the sentencing of a Waco, Texas tax return professional to 27 months imprisonment for tax crimes. The government claims the accused inflated client’s deductions and claimed fraudulent education credits.
Overall, the government says that over a span of two years, from 2013 through 2014, the accused cost the Internal Revenue Service (IRS) over $1.3 million in tax revenue.
Stiff penalties for fraudulent returns
The case provides an example of the harsh penalties that can come with tax crimes. In addition to over two years imprisonment, the sentence also included three years of supervised release and mandatory restitution of $1,337,800.88.
The accused was not alone. According to a recent news release from the DOJ, the government also pursued charges against a co-worker. The government also announced the sentencing of the co-worker to over seven years imprisonment and mandatory restitution payments of over $8 million to the government.
Government will investigate tax return professionals
This is just the most recent example of the DOJ’s continued focus on tax return preparation professionals. The agency will investigate allegations of wrongdoing and will pull in the assistance of multiple agencies to build a case. This case involved assistance from agencies including the IRS, the DOJ and the United States Attorney’s Office.
As a result, anyone that receives notification of an impending investigation or federal tax audit is wise to take the matter seriously. An attorney experienced in the laws surrounding the tax return preparer profession can provide guidance and better ensure your legal rights are protected throughout the process.