CHARLESTON, SOUTH CAROLINA –David Washington, 55, of Charleston, pleaded guilty in federal court to aiding and abetting the preparation of false and fraudulent tax returns containing false deductions.
Evidence presented at the guilty plea hearing established that Washington was operating a fraudulent scheme in which it would claim false business losses for taxpayers whose returns it prepared to offset reported income. Investigators determined that the Washington clients had provided correct tax information to Washington in the hope that it would accurately complete the clients’ returns. The amount of business loss fraudulently claimed by Washington generated a substantial tax refund to which the taxpayers were not entitled and resulted in a significant loss of tax revenue for the United States government.
“The vast majority of tax preparers, like taxpayers, are truthful and honest in their work, calculations and submissions,” said U.S. Attorney Adair F. Boroughs. “Those who seek to violate tax laws, however, will face this office and our federal partners at the IRS, as we will continue to vigorously investigate and prosecute those who break the law.
“The IRS and the Department of Justice are working vigorously to end abusive tax schemes, the activities of which unfairly shift the tax burden to honest American taxpayers,” said Donald “Trey” Eakins, Special Agent in Charge of the IRS Field Office. IRS in Charlotte.–Criminal Investigation Division. “Today’s legal action should remind taxpayers to beware of any tax preparer scheme that falsely adds expenses to their tax returns for the sole purpose of offsetting their income.”
Washington faces a maximum sentence of three years in federal prison and a fine of $250,000.00. United States District Judge David C. Norton accepted the guilty plea and will sentence Washington after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The case was investigated by the IRS. Assistant U.S. Attorney Amy F. Bower prosecuted the case.
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