Jersey Tax Preparer Convicted of Tax Fraud

A New Jersey tax preparer was convicted of tax fraud for getting unearned tax refunds for his clients to make extra money for himself.

Courtney Johnson, 45, of Union Township, New Jersey, was convicted Tuesday of six counts of aiding and assisting in the preparation of false federal income tax returns following a two week trial before U.S. District Judge Anne E. Thompson in Trenton federal court. The jury deliberated four hours before delivering the verdicts.

Johnson allegedly attached schedules for fictitious businesses to his clients’ tax returns that the taxpayers did not own or operate, inflated charitable contributions and fabricated itemized deductions to generate fraudulently inflated refunds.

His wife, Carol Johnson, 44, who ran the business with him, has previously pleaded guilty to misprision of a felony and is awaiting sentencing. The Johnsons operated tax preparation businesses in South Orange and Jersey City, N.J.

Each false tax return count carries up to three years in prison and a $250,000 fine. Sentencing for Courtney Johnson is scheduled for Sept. 25, 2015.

U.S. Attorney Paul Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty verdict. The government was represented by Assistant U.S. Attorneys Jane H. Yoon and Jillian J. Reyes of the Criminal Division in Newark.

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