IRS raids tax preparer’s office in Marysville
Published 10:48 pm Tuesday, April 7, 2009
MARYSVILLE — A Marysville tax preparer who allegedly made up deductions to get his clients refunds now is under investigation by federal officials.
Agents from the IRS’s criminal investigation division raided the man’s Marysville home last week, according to a search warrant filed April 1 in U.S. District Court in Seattle.
Officials seized the man’s business records and client information, the document said.
Authorities believe the man who operated Jim’s Tax Service may have been making up personal and business deductions on individual income tax returns, court documents said.
No one has been arrested and the investigation is ongoing, IRS officials said.
In March, two undercover IRS agents contacted the man and asked him to prepare their tax returns.
One undercover agent told the man he worked a side business as a personal trainer and earned part of his income in cash, the document said.
The tax preparer allegedly told the undercover agent in a secretly recorded phone call, “If you’re getting paid in cash, why even, no, why claim it, that’s stupid. … When people pay me with cash, I don’t claim it, of course not,” the document said.
When the agent picked up the completed return, the tax preparer reportedly had invented deductions. Instead of owing the government $4,905, the return now showed a refund of $420, effectively cheating the government out of $5,325, according to the affidavit.
The second undercover agent had a similar experience, according to the search warrant. The tax preparer allegedly eliminated income and invented deductions to calculate a $1,003 refund in place of a $5,480 balance due.
It’s not clear if the clients of Jim’s Tax Service were aware of the alleged fraud.
People who hire tax professionals to complete returns need to be wary, according to an IRS Web site. Even if someone else completes a return, individuals still are liable for the information filed with the IRS.
It’s best to avoid tax preparers who promise large refunds or who seek payment based on a percentage of the refund secured.
Anyone who suspects a tax preparer may be attempting to defraud the government can call the IRS at 206-464-4928.
Jackson Holtz: 425-339-3437, jholtz@heraldnet.com
