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Thursday, February 11, 2010

DOJ Tax Budget Request - The Criminal Parts #7 - Return Preparer Fraud

More on the DOJ Tax Budget Request

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Return-Preparer Fraud

Corrupt accountants and unscrupulous tax return preparers present a serious law enforcement concern. Some accountants and return preparers dupe unwitting clients into filing fraudulent returns, while others serve as willing “enablers,” providing a veneer of legitimacy for clients predisposed to cheat. In either case, the professionals often commit a large number of frauds, and their status as professionals may be perceived as legitimizing tax evasion, thereby promoting disrespect for the law. Tax Division attorneys vigorously investigate and prosecute such cases.

For example, in August 2008, in United States v. Dennis B. Evanson, et al. (D. Utah), Evanson, an attorney, was sentenced to 10 years in prison and three accountant co-defendants were also sentenced to prison for their $20 million tax fraud scheme. After a trial in February 2008, Evanson was convicted of conspiracy to commit mail and wire fraud, tax evasion, and other tax crimes. Evanson and his codefendants conspired to conceal portions of their customers’ income from the IRS and to create false deductions for the purpose of reducing the income taxes paid by their customers.

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