On February 8th, a Baltimore, Maryland tax return preparer was convicted of 15 counts of aiding and assisting in the preparation of false tax returns after a five day jury trial.
According to the Department of Justice press release, the return preparer operated a tax preparation business called JC Tax Service, Inc., in Baltimore between 2008 and 2012. “During that time, the defendant prepared false individual income tax returns for at least seven clients for submission to the Internal Revenue Service (IRS).”
The tax returns reported false and fraudulent income and expenses on Form 1040, Schedule C (Profit or Loss From Business) that produced inflated refunds for his clients. The expenses included grossly inflated or wholly fictitious mileage expenses.
The U.S. District Court for the District of Maryland will hold a sentencing hearing on May 12th and the return preparer could face a maximum sentence of three years in prison and a maximum fine of $250,000 on each count.
This conviction rides the heels of a Department of Justice suit to permanently shut down a tax preparation service franchise owner in South Carolina accused of preparing fraudulent tax returns.
Giovanni V. Alberotanza is a tax attorney who represents businesses and individuals throughout all stages of civil and criminal federal and state tax controversies. For a free consultation, please contact Giovanni at email@example.com or 410.649.4990.