Lots of fraud this weekend. Let’s start with the Bozo side of tax fraud, with yet another Bozo preparer.
DaJuan Jackson was one of two preparers at a branch office of American Tax Associates in District Heights, Maryland. His methods helped his clients immensely—they added false information on clients’ returns to increase their refunds. That’s a crime, and Mr. Jackson was found guilty of eight counts of preparing false income tax returns. There is a bright side for Mr. Jackson: He was found not guilty on eight additional counts of preparing false tax returns. The jury couldn’t reach a verdict on eight other counts. Mr. Jackson will be sentenced next year and will likely be visiting ClubFed.
Terry Reed found an interesting method of increasing his income. Mr. Reed wasn’t making much; inmates make about $1 an hour. So Mr. Reed filed 23 false tax returns with the IRS and received $140,000 in refunds. He was caught, and he could get another ten years. It’s likely he’ll have to make restitution to the government. He could even be fined…and at $1 an hour it may take a long time to pay that fine.
I found another Californian with a tax blog. Bill Murray (no, not that Bill Murray) is a CPA in Sacramento. I found his blog which has a great name—April15.com—by accident; he linked to a story I ran earlier this month. But now on to the Bozo story. Mr. Murray is a former IRS Revenue Agent and he knows that every Revenue Agent’s tax return is examined (audited) every year. He’s not a Bozo. But Jim Liu appears to be. Mr. Liu, of nearby Diamond Bar, is accused of claiming a loss on a sale of an apartment complex when he actually made money. He allegedly provided false documents during an audit, and filed a false return. He faces charges of obstruction and tax fraud. As Mr. Murray said, “Since Agent Liu knew his returns were going to be audited, I just can’t see how he could be so stupid to claim a loss he didn’t have and then submit false documentation.”