Compassion and Competence

Ansible Tax & Document Research Services

March 31st, 2014 at 10:51 AM

7 Dumb Tax Fraudsters: Not so wily practitioners?

From Accounting Today…

Some of our favorite recent tax fraud cases. (Don’t try this at home- especially the part where you make up your own w-2s and 1099s – ed.)

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Cave Creek, Ariz.: Preparer Linda Mary Anderson, owner and operator of Coyote Accounting, has been charged with 16 counts of false tax-related claims.

Authorities said that from about January 2009 through about November 2010, Anderson prepared and filed federal income tax returns on behalf of more than 100 taxpayers that collectively claimed more than $63 million in false income and withholdings. For the counts in the indictment, she prepared returns seeking some $3,852,947 in false refunds and caused the government to issue some $2,183,633 in false refunds.

Anderson prepared and e-filed more than 2,000 false tax documents with the IRS using 1099-As and 1099-0IDs to falsely report false income and withholdings. She also did not register for or use an e-file account under her own name or her business name, but instead used two accounts registered to others.

Kansas City, Kan.: Preparer Ahferom Goitom, 34, has been indicted after being charged with 14 counts of preparing false returns.

The indictment alleges that Goitom, manager of a franchise tax prep business, prepared at least 34 1040s containing false and fraudulent education credits, charitable deductions, medical and dental expenses, home mortgage interest deductions, gross receipts for a sole proprietorship business, expenses for a sole proprietorship business, and deductions for rental real estate.

For example, according to the indictment, Goitom filed a return for 2009 claiming medical and dental expenses of $5,050, gifts to charity of $8,200 and job expenses and miscellaneous deductions of $5,821 when he knew that the client was entitled to claim medical and dental expenses of only $226, gifts to charity of approximately $2,000 and no job expenses or other miscellaneous deductions.

If convicted, he faces a maximum of three years in federal prison and a fine up to $250,000 on each count.

There’s more! Go to original: Tax Fraud Blotter: Not So Wily a Coyote

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