Tax Fraud Blotter: Mass preparer suspensions in Maryland
Fake children and other highlights of our favorite recent tax fraud cases.
Idaho Falls, Idaho: Preparer April Carrillo, 43, has been sentenced to nine months in prison to be followed by a year of supervised release and been ordered to pay $93,945 restitution for preparing false income tax returns for clients of her business, Carrillo’s Tax Service.
According to the plea agreement, from 2009 through 2011 Carrillo and some of her employees submitted more than 2,500 federal falsified returns, primarily by claiming tax credits to which their clients were not entitled.
Carrillo and her employees prepared returns that claimed the Child Tax Credit and the Additional Child Tax Credit for taxpayers who did not qualify for these credits. This inflated clients’ refunds helped Carrillo’s Tax Service to generate business.
She pleaded guilty to one count of assisting, advising and counseling clients to submit materially false federal income tax returns to the IRS.
Annapolis, Md.: State comptroller Peter Franchot has suspended processing electronic returns from 20 preparers due to a “high volume of questionable returns received.”
The preparers are OSE Tax Services, Express Tax Inc., Quick Tax Service, HRQT LLC, Quick Tax, Quick Money Tax Service, Protaxem, Tax Maid and Eltonia Tax & Contract Service LLC, all in Baltimore; Vasquez Tax Services, Hyattsville, Md.; ALR Tax and Financial Services LLC, Capitol Heights, Md.; Monique’s Taxprep Services, Halethorpe, Md.; KLS Tax Services, Accokeek, Md.; Liberty Tax Service, District Heights, Md.; OVF Consulting, Silver Spring, Md.; Tax Plus, Middle River, Md; Quality Tax Service, Owings Mills, Md.; and Patricia’s Bookkeeping and Accounting, Reisterstown, Md.
The Maryland comptroller also suspended processing returns from OFAB LLC in Washington, D.C., and JAE Establishments LLC in Camp Hill, Penn.
Gulfport, Miss.: Former preparer Emma Jean Raine, 52, now serving life in prison for hiring a hit man to kill her second husband, also has been ordered to pay $94,107.01 restitution to the IRS after a guilty plea involving false tax returns she prepared for clients, according to published reports.
Raine also received two years in prison for the tax fraud. A judge ordered the fraud term should be served concurrently with the prison term for her husband’s murder.
Raine reportedly admitted she filed false returns for clients for several calendar years starting in 2009 and she continued to file false returns under a new business name after her EFIN was revoked.
Philadelphia: Local residents Moise Olivier, 27, and Hans Pierre, 28, have pleaded guilty to conspiring to file federal tax returns using stolen IDs.
According to the indictment and information in court, Olivier and Pierre opened bank accounts in the names of “Moise Olivier Tax Service” and “Hans Pierre Tax Service,” though neither had a tax service. Using stolen personal IDs, members of the conspiracy e-filed returns seeking fraudulent refunds and directed the IRS to deposit the refunds in Olivier’s and Pierre’s accounts. Olivier and Pierre withdrew cash from the accounts to provide to other co-conspirators.
Olivier admitted to causing a tax loss of $181,805.10, while Pierre admitted to causing a tax loss of $95,157.41.
Olivier’s sentencing is scheduled for May 2 and Pierre’s for April 27. Both face maximum sentences of 10 years in prison, a period of supervised release, restitution and monetary penalties.
Raleigh, N.C.: Preparer Ronald McIlwain, 66, has pleaded guilty to 18 counts of aiding or assisting in the preparation of fraudulent returns, according to published reports.
News outlets said McIlwain was ordered imprisoned for 56 to 86 months and to pay restitution of $21,205.43.
McIlwain, manager of Overnight Tax Services, prepared clients’ returns for 2011, 2012, 2013, 2014 and 2015 with fraudulent deductions, according to reports. Evidence showed he created false businesses, business expenses, personal expenses and deductions on returns.