The owner of a New Jersey tax preparation business pleaded guilty to willfully preparing false tax returns for clients.
Jean Desrosiers, 56, entered his plea Tuesday in federal court before Judge Joel Pisano, pleading guilty to aiding and assisting in the preparation of false tax returns.
“While most return preparers provide excellent service to their clients, a few dishonest tax preparers file false and fraudulent returns to defraud the government, the taxpaying public and their own clients,” said Shantelle P. Kitchen, special agent in charge of IRS-Criminal Investigation’s Newark Field Office. “The taxpaying public can be assured that IRS-Criminal Investigation will continue to vigilantly identify and investigate fraudulent preparers like Mr. Desrosiers.”
According to court documents, Desrosiers was the sole owner and operator of Jean Multiple Services. JMS operated over time at various locations in Essex County, including West Orange, Newark and Maplewood. For tax years 2007 through 2011, a portion of the tax returns Desrosiers prepared for his clients were fraudulent. According to prosecutors, he fabricated and inflated itemized deductions on Schedule A, including medical and dental expenses, charitable contributions and job and other miscellaneous expenses, to obtain larger tax refunds for his clients. Desrosiers also prepared some fraudulent returns for clients by fabricating and inflating education tax credits on Form 8863 and Child and Dependent Care Expenses on Form 2441.
Desrosiers prepared the initial version of the false and fraudulent returns in the presence of his clients. However, on certain fraudulent tax returns, he filed a different version of those returns with the IRS. The tax returns filed with the IRS contained higher Form 8863 education credits in order to obtain refunds in amounts even greater than the refunds claimed on the initial version of the fraudulent returns.
The fraudulent tax returns filed with the IRS by Desrosiers caused a tax loss to the government of approximately $168,424.
Desrosiers faces up to three years in prison and a fine of up to $250,000. Sentencing is scheduled for October 2.
The investigation was conducted by IRS-Criminal Investigation's Newark Field Office, under the direction of special agent in charge Shantelle P. Kitchen, and the U.S. Attorney’s Office, under the direction of U.S. Attorney Paul J. Fishman. The government was represented by Assistant U.S. Attorney Shirley Emehelu and the defense by Sean Brannigan of Montclair, N.J.