BEWARE TAX PREPARER FRAUD
September 4, 2019 - Douglas Myser
Beware tax preparer fraud. In its ongoing push to fight cyber crime, tax refund fraud, and identity theft, the IRS occasionally lists tax preparer's who have been caught in tax schemes designed to financially benefit them, and defraud the public of tax dollars. Preparers Omar Faruq, 37, and co-conspirator Omar Ali, 36, have both entered please of guilty on one count each of conspiracy to defraud the IRS, aiding another in the filing of a false return. Faruq and Ali conspired to file false tax returns on behalf of their clients at Omar Consultancy Inc., a tax service operated by them with offices in Pennsylvania and New Jersey. According to the plea memorandum, Faruq and Ali consistently used false filing statuses, false deductions and expenses, false business income and losses, and fictitious credits to decrease tax liabilities and inflate refunds. Faruq diverted portions of his clients refunds to his own bank account as part of the conspiracy, totaling more than $300,000 and Ali diverted more than $170,000 to his own account.
Preparer Earlene Clancy, 39 has pleaded guilty to aiding or assisting in the preparation or filing of false federal income tax returns. Between 2010 and 2016, Clancy prepared hundreds of false federal income tax returns for other persons while employed as a preparer for Cititax Refund Company. The returns included false Schedule C information and requested hundreds of thousands of dollars in false Earned Income Tax Credits. Beware tax preparer fraud.
Preparer Marcus Wilson, 32, has been sentenced to 30 months in prisons plus three years of supervised release and been ordered to pay $1,026,340 in restitution for filing false claims with the government. Wilson admitted that during 2011 and 2012 he filed numerous false returns on behalf of others and that he told clients that they may qualify for Obama's Stimulus" or "Renters Rebates" if they had not filed any return in a given year. The individuals then provided Wilson with information sufficient for him to file a return on their behalf, the individuals generally did not provide any financial or other tax related information and Wilson falsified information regarding the individuals wage and business income to obtain federal refunds.
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