IRS Lists Recent Prosecutions of Fraudulent Tax Preparers

To illustrate the need to take care when , representatives from the Internal Revenue’s Springfield office have shared examples of recent successful New Jersey prosecution of tax fraud by tax preparers.

In a press release, IRS Criminal Investigation Acting Special Agent in Charge of the Newark Field Office JoAnn Zuniga recounted several recent return preparer investigations conducted by the Newark Field Office.
 

• The owner of JB’s Tax and Bookkeeping Services, located in Paterson, New Jersey, pleaded guilty today to willfully preparing false tax returns for clients. Jane Beasley, a resident of Passaic County, New Jersey, entered her plea in federal court before Judge Esther Salas. Beasley pleaded guilty to aiding and assisting in the preparation of false tax returns. According to court documents, for the tax years 2005 through 2009, Beasley prepared false tax returns for her clients by fabricating and inflating itemized deductions for medical expenses, charitable contributions and unreimbursed business expenses in order to obtain tax refunds for her clients greater than those they were lawfully entitled to receive.

• A Newark tax preparer was sentenced to six months in prison for preparing numerous false individual income tax returns on behalf of his customers, resulting in a significant tax loss to the IRS, U.S. Attorney Paul J. Fishman announced. Carlo St. Jean, 40, previously pleaded guilty mid-trial to Counts One, Three, Six, Nine, 10, 11, and 13 of the Superseding Indictment against him. Each count charged the defendant with aiding and assisting in the preparation and presentation of false and fraudulent tax returns to the IRS – from 2004 through 2006. St. Jean entered his guilty plea before U.S. District Judge Stanley R. Chesler, who was presiding over the trial. Judge Chesler also imposed the sentence today in Newark federal court. According to documents filed in this case and statements made in court, from January 2003 through April 2006, St. Jean was the sole owner and operator of Grand Travel Inc. Discount Timeshare, a commercial tax preparation business in Newark. During this time period, St. Jean met with individual taxpayers, including six customers and an individual he later learned was an undercover IRS agent. St. Jean counseled his customers in the preparation of false returns, which were fabricated and inflated in order for his customers to obtain refunds from the IRS in amounts greater than they were entitled to receive, resulting in a tax loss of between $30,000 and $80,000. The phony deductions included medical and dental expenses, charitable contributions, and unreimbursed employee expenses.