The owner of a New Jersey tax prep business was sentenced to six months in prison followed by six months of home confinement for willfully preparing false tax returns for clients.  

Patrick Delfosse, 54, the owner of Del Tax Services, was also ordered Monday by U.S. District Judge Mary Cooper to pay restitution to the IRS in the amount of $109,243.  

Delfosse pleaded guilty last September to one count of aiding and assisting in the filing of false tax returns (see Jersey Tax Preparer Pleads Guilty to Preparing Fraudulent Tax Returns).  

Delfosse's tax prepar business provided services mainly to individual taxpayers. According to prosecutors, Delfosse prepared a 2006 tax return for two clients identified only as DB and MB.

Delfosse prepared a Schedule E, Supplemental Income and Loss, claiming approximately $23,938 in rental real estate losses on DB and MB’s 2006 tax return.  Delfosse admitted that the rental real estate losses he listed on this tax return were false.     

The investigation was conducted by IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen and the U.S. Attorney’s Office, under the direction of U.S. Attorney Paul J. Fishman. The government was represented in the case by Assistant U.S. Attorney Daniel V. Shapiro. 

“As we approach the April 15th filing deadline, today’s sentence is a reminder that tax practitioners and return preparers have a duty to their clients to prepare tax returns that comply with the law and are complete and accurate,” Larsen said in a statement.

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