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IRS Stops Accounting Services Miami Accused of Stealing Client Refunds

IRS Stops Accounting Services Miami Accused of Stealing Client Refunds

The Internal Revenue Service’s Criminal Investigation division has cracked down on a pair of Accounting Services Miami accused of stealing their clients’ tax refunds.

In one case, Accounting Services Miami has pleaded guilty and faces up to six years in prison. The Accounting Services Miami admitted to preparing and filing hundreds of tax returns, including his own, claiming inaccurate and false  items on his taxpayer-clients’ returns. They filed the false tax returns to increase refunds, collecting over $1.4 million of stolen refunds from the IRS. Hence a reason always to hire licensed CPA Firms.

According to the plea agreement, the pair of Accounting Services Miami and Tax Accountants accused would meet clients at their homes and prepare a largely accurate income tax return on his laptop. If the client was due a refund, the pair of Accounting Services Miami and Tax Accountants accused would give the client a check from his personal checking account in the amount stated on the accurate return and misrepresent to the client that he would file the accurate return with the IRS according to CPA Firms

Accounting Services Miami Close to the case:

Later, the pair of Accounting Services Miami and Tax Accountants accused would prepare a false tax return, including fictitious items such as false spouses, dependents, child or dependent care, and education expenses, in order to increase the refund amount.  The pair of Accounting Services Miami and Tax Accountants accused would forge the signature of the taxpayer and then mail the false tax return to the IRS. The pair of Accounting Services Miami and Tax Accountants accused would direct the inflated refunds to be deposited into 29 different bank accounts that he controlled.

The pair of Accounting Services Miami and Tax Accountants also admitted, according to his plea agreement, that he employed a similar scheme on his own 2008 federal tax return, claiming a fictitious spouse and dependent. They also admitted failing to report their true income from his tax return business and the illegal refunds he received.

As part of his plea agreement, the Accounting Services Miami agreed to a permanent injunction, barring him for life from preparing federal income tax returns for anyone other than himself and his legal spouse and barring him from representing persons before the IRS. The non CPA Firms will publish the civil injunction to all of his current clients. They also agreed to make full restitution in the amount of $753,477 and agreed to enter into a closing agreement with the IRS for taxable years 2005 through 2009, correctly reporting his tax liability to the IRS.

The pair of Accounting Services Miami and Tax Accountants convicted face a combined maximum sentence of six years in prison when they is sentenced in May, along with a one-year period of supervised release; a fine of $500,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $200.

In a similar case, a Accounting Services Miami, was arrested and made his initial appearance in court. A federal grand jury returned a 39-count indictment Wednesday charging him with 35 counts of filing false income tax returns and four counts of theft of government property, namely tax refunds and economic stimulus checks.

According to the indictment, the Accounting Services Miami filed 35 tax returns claiming false deductions, expenses or credits for which the taxpayer was either not entitled to claim or only entitled to claim substantially less than the reported amount. The false tax returns allegedly included information with respect to false dependents, unreimbursed employee business expenses, education credits, and business profit or loss.  Accounting Services Miami allegedly also stole two refund checks and two stimulus checks issued from his clients.

About 

Gustavo A Viera is the managing partner of Gustavo A Viera, PA. His experience spans more than 25 years. He started his career in public accounting at PriceWaterHouseCoopers where reached the level senior audit manager. His Fortune 500 experience includes positions as CFO – Latin America Region for both Hewlett Packard and Telefonica of Spain. Gustavo also writes a blog twice a week that addresses trending accounting and tax issues. He is an SBA Advisor and teaches workshops for aspiring entrepreneurs. His office is located at One Alhambra Plaza Floor PH Coral Gables FL 33134, and is admitted to practice in the State of Florida as a licensed Certified Public Accountant. Gus welcomes questions and he can be reached at 786-250-4450.

About the Author

Gustavo VieraGustavo A Viera is the managing partner of Gustavo A Viera, PA. His experience spans more than 25 years. He started his career in public accounting at PriceWaterHouseCoopers where reached the level senior audit manager. His Fortune 500 experience includes positions as CFO - Latin America Region for both Hewlett Packard and Telefonica of Spain. Gustavo also writes a blog twice a week that addresses trending accounting and tax issues. He is an SBA Advisor and teaches workshops for aspiring entrepreneurs. His office is located at One Alhambra Plaza Floor PH Coral Gables FL 33134, and is admitted to practice in the State of Florida as a licensed Certified Public Accountant. Gus welcomes questions and he can be reached at 786-250-4450.View all posts by Gustavo Viera →

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