Tax evasion blotter: mom forced me to do it
That’s a lot of ten cents; divided, she fell; mom made me do it; and other highlights of recent tax cases.
Delray Beach, Florida: Tax preparer Michlin Delivrance has pleaded guilty to conspiring to defraud the United States.
Delivrance owned and operated the Tax USA tax preparation business and, from at least 2015 to 2019, conspired with Scott Forbes and others in the company to claim inflated refunds from clients by claiming false income, expenses and itemized deductions. Delivrance charged clients substantial fees for preparing the returns and caused a federal tax loss of $ 250,000 to $ 550,000.
The sentence is passed on October 21, when he faces a maximum of five years in prison, as well as a period of supervised release, restitution and financial penalties. Forbes pleaded guilty in June.
Fort Oglethorpe, Georgia: Accountant and office manager Alice Sue Smith was sentenced to 43 months in prison, followed by three years on probation for stealing from her employer and making false statements.
Smith worked at Chattanooga Coin Inc. from 2004 to 2018. Starting in 2009, she forged the signatures of business owners on some 1,400 checks that she then cashed. She also created fictitious check stubs in the company’s financial records to cover up her fraud.
In total, she stole some $ 1.24 million from Chattanooga over nearly a decade.
Smith also failed to report embezzled funds and other legitimate income on his tax returns.
She was also ordered to pay Chattanooga and the United States in damages of approximately $ 1.48 million.
Lebanon, Missouri: Lawyer Meagan M. Howe, aka Meagan M. Hasty, has pleaded guilty to tax and labor offenses.
Howe owns and operates Conquer the Divide LLC. She is also the former owner and operator of the law firm Garner and Howe; Missouri Law Firm LLC; and Just Ask Howe Tax Advocacy Services LLC.
She admitted that she withheld $ 15,019 in federal taxes from the paychecks of her employees at two of the companies in 2019, but did not return the money to the IRS. Howe admitted that she did not pay an additional $ 10,285 in corporate employment taxes in 2019 and that she falsely prepared and submitted 2018 returns for herself and her husband. By filing separate returns that each claimed head of household status, she was able to fraudulently receive $ 3,775 in earned income tax credits.
She also admitted that she did not forward $ 3,111 of contributions to an employee pension plan and then lied about it.
Howe must pay restitution to the IRS, the Missouri Department of Revenue, and individual victims. She faces up to 10 years in prison.
Lilburn, Georgia: Resident Marquet Mattox has been convicted of filing fraudulent returns on behalf of several trusts.
Between 2016 and 2018, Mattox filed at least 30 fraudulent federal tax returns on behalf of at least 11 different trusts. These statements falsely represented that the trusts had earned interest income and that income taxes had been withheld and paid to the IRS. Mattox then fraudulently demanded refunds on behalf of the alleged trusts totaling nearly $ 165 million.
The IRS paid about $ 5 million in refunds, which Mattox used to buy a house, expensive furniture, and a luxury automobile.
He faces a maximum of 20 years in prison for wire fraud, five years for misrepresentation and 10 years for theft of government funds. He also faces a period of supervised release, restitution, financial penalties and confiscation.
Charleston, West Virginia: Misty Brotherton-Tanner, 41, who provided bookkeeping and accounting services to local businesses, was sentenced to 33 months in prison for wire fraud and money laundering and was ordered to pay $ 537,173 in compensation.
From at least 2014 to 2020, Brotherton-Tanner, who pleaded guilty in April, transferred money electronically and moved transactions between accounts to hide his fraud. She was not allowed to pay herself from those corporate accounts, but her ploy was to register as an employee for the various companies, to open fraudulent accounts in the name of fictitious workers that she would add. then to accounting software and pretend she paid state and federal taxes for businesses. Throughout the program, Brotherton-Tanner transferred the money transferred to his personal checking accounts.
She defrauded various businesses of $ 537,173. She also stole money for and at the behest of her mother Lois Brotherton, who also pleaded guilty to her role in the scheme and was sentenced to probation.
New Orleans: A federal court has permanently banned two local tax preparers from preparing returns for others and from owning, operating or franchising any tax preparation business in the future.
The court handed down judgment against Mario Alexander by default; defendant Leroi Jackson consented to the entry of the injunction against him.
Alexander and Jackson, both individually and doing business as The Taxman Financial Services, must send injunction notices to each person for whom they have prepared federal returns and publish the injunctions in the places where they do business. , including social media accounts and websites.
The lawsuit against Alexander and Jackson alleged that they prepared returns claiming fabricated business income and expenses, as well as various false deductions and tax credits, including charitable contributions and education credits. He also alleged that the two men fabricated business income or expenses to increase EITC demands.
According to the complaint, Alexander and Jackson significantly underreported clients ‘tax obligations, obtained fraudulent refunds and charged exorbitant fees for their services, often without the clients’ knowledge.
Phoenix: Thomas Rampetsreiter, previously convicted of conspiring to produce fraudulent statements, has had his sentence added to nine months in jail for failure to appear.
In August 2020, he was sentenced to two years in prison and ordered to pay $ 2,211,304 in restitution to the IRS. He was ordered to surrender to begin his sentence a year ago, but failed to surrender and was later arrested in Florida. Rampetsreiter was staying at a Florida hotel under an assumed name with a reverse license plate on his vehicle. He also had four cell phones, several debit cards and four international $ 1,000 money orders.
He was part of a plot in which another preparer was sentenced to 21 months in prison and ordered to pay $ 2,211,304 in restitution to the IRS.
The scheme involved creating bogus entities for clients and fabricating expenses, deductions and losses to underestimate or eliminate a client’s taxable income.
West Palm Beach, Florida: A federal court has permanently banned tax preparer Nate E. Dameus from preparing federal tax returns for others and from owning, operating, managing, assisting or working in any preparation business in the future.
Dameus stipulated at the entrance of the injunction. He must send a notice of injunction to each person for whom he has prepared federal returns, other tax forms or refund requests after January 1, 2018, and advertise the injunction on social media for a period of time. year.
The complaint alleged that he used fraudulent practices in preparing returns from clients who underestimated the tax owed and / or overestimated the refund.
For example, according to the alleged complaint, he prepared statements with fabricated deductions and included claims for bogus unreimbursed employee business expenses, such as car mileage, tools, cell phone services, and meals. .
Further, the complaint alleged that he routinely falsified home improvement expenses on his clients’ returns to claim unearned residential energy credits.