Adis Smith, a tax return preparer based in Chula Vista, California, and formerly of Baltimore, Maryland, has been sentenced to 27 months in prison. Smith’s sentencing comes as a result of his involvement in preparing and filing false income tax returns that caused significant financial damage to the Internal Revenue Service (IRS) and, by extension, the United States taxpayer.
Court documents reveal that Smith engaged in fraudulent activities by preparing income tax returns for his clients that reported either fictitious or inflated business losses and itemized deductions. These false declarations were designed to reduce the amount of taxes owed by his clients unlawfully or to increase their refunds from the IRS illegitimately. To further evade detection, Smith operated as a “ghost preparer,” making it appear that the tax returns had been prepared by the clients rather than by him. This deceitful practice led to Smith preparing over 1,000 false tax returns, culminating in a tax loss to the IRS of approximately $4.7 million.
Following his conviction, U.S. District Judge Stephanie A. Gallagher sentenced Smith to prison time and ordered him to serve one year of supervised release following his incarceration. Moreover, Smith is mandated to pay restitution amounting to $4,729,311 to the United States, aiming to compensate for the financial losses incurred due to his fraudulent actions.
This case was brought to light and investigated by the IRS Criminal Investigation unit, highlighting the dedicated efforts of law enforcement agencies to combat tax fraud and protect the integrity of the United States tax system. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland announced the sentencing, emphasizing the commitment of the Justice Department to prosecuting individuals who undermine the country’s tax laws.
The prosecution of Smith’s case was handled by Trial Attorneys Matthew Cofer and Sarah Ranney of the Justice Department’s Tax Division and Assistant U.S. Attorney Sean Delaney for the District of Maryland. Their successful prosecution sends a clear message to tax preparers and individuals alike about the severe consequences of engaging in tax fraud.
For small business owners and individual taxpayers, this case serves as a critical reminder of the importance of adhering to tax laws and the dangers of engaging with preparers who promise unusually large refunds or employ dubious methods to reduce tax liabilities. It also highlights the vigilance of the IRS and the Justice Department in pursuing and prosecuting tax fraud, thereby ensuring that the tax system operates fairly and justly for all citizens.
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This article, "Maryland Tax Preparer Receives Prison Sentence for Filing Over 1,000 False Tax Returns" was first published on Small Business Trends
via https://www.aiupnow.com
Small Business Editor, Khareem Sudlow
