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Texas tax return preparer accused of fraud

January 13, 2018

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The Internal Revenue Service (IRS) keeps a close watch over tax preparers. IRS-Criminal Investigation agents are on watching for professionals who fraudulently inflate deductions or attempt to take unallowable credits. IRS agents work to gather evidence to build a case against those who are accused of committing fraud within this profession.

A recent case provides an example.

Houston tax preparation profession arrested for tax fraud

The case involves a man that prepared income tax returns in Houston from 2010 to 2012. The IRS accused the man of using fraudulent means to gain a reputation for getting his clients large refunds. A local paper out of Houston reports the man admitted to adding “false deductions, credits and business losses to 61 client income tax returns without their knowledge” in an attempt to inflate the refunds. The agency estimated the refunds were inflated by over $200,000.

Confession leads to conviction

The confession was a key piece of evidence used to support the man’s conviction. The accused tax preparer was sentenced to over one year imprisonment, an additional year of supervised release and a restitution payment to the IRS of $212,853.

Lessons for tax preparation professions from this case

An investigation by the IRS is a serious and intimidating affair. It is not uncommon for tax preparation professionals who simply make an error in a return to be overwhelmed by allegations of criminal activity when in this situation. As such, it is best to seek legal counsel to help review the situation and craft an appropriate response. An attorney experienced in tax attorney can advocate for your interests and better ensure a favorable resolution.

Tax Crimes