Real Life Allegations and Admissions of Tax Fraud

tax fraud allegations of criminal activityAccounting Today is an online publication for the accounting community. One of the things it does well is to remind that community that tax preparers and accountants can face severe penalties if they help a taxpayer break the law, as well as if they misappropriate client information to carry out crimes of their own.

A recent article on the publication's site listed examples of tax fraud allegations, including charges against a suburban Cleveland preparer. The 36-year-old is accused of filing dozens of false, inflated returns.

The Middleburg Heights man and a co-conspirator reportedly overstated medical expenses and education credits in an effort to pump up refunds for clients of his tax preparation business. Authorities say the pair sometimes directed customers with refund checks to a nearby check-cashing business so that they could pocket cash kickbacks.

In 2012, customers reportedly kicked back $20,000 to the preparer from their inflated returns.

Accounting Today also reports that a Pennsylvania tax preparer is accused of similarly inflating expenses and deductions to supersize her customers' refunds. She faces 58 tax fraud charges. If convicted on all counts, she could be sentenced to 174 years in prison and hit with a $14.5 million fine.

Contrast that case with a matter involving a Kentucky preparer who pleaded guilty to filing false tax returns and failing to pay $40,079 in federal income taxes. Her plea agreement states she underreported her own income for three years while running a tax prep business out of her home. The 44-year-old faces a maximum of 3 years in prison when she is sentenced, the U.S. Department of Justice says, and has also agreed to pay her owed federal taxes, along with interest and penalties.

When a person makes a mistake, they can often find that with the help of an experienced, knowledgeable attorney, they can acknowledge that mistake, pay an acceptable price for it and then resume their life. You can discuss your situation with a Cleveland tax fraud defense attorney to learn about your options.

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