Tax Return Preparer Indicted For Tax Fraud That Caused More Than $1.6 Million Loss
NEWARK, N.J. - A federal grand jury in Newark today returned a nine-count indictment charging a former Bergen County tax return preparer for his alleged role in filing false federal income tax returns and filing false personal returns, U.S. Attorney Paul J. Fishman announced.
Wayne Dunich-Kolb, 49, formerly of Saddle River, N.J., was charged with aiding and assisting in the filing of false federal income tax returns for tax years 2007, 2008, 2009, 2010 and 2011; and with preparing and signing his own false federal income tax returns for tax years 2007, 2008, 2009 and 2010. Dunich-Kolb’s will make his initial court appearance on March 27, 2014, before U.S. Magistrate Judge James B. Clark III.
According to the indictment:
Dunich-Kolb owned and operated a tax preparation business called Dunich-Kolb LLC, which he ran from his residence in Saddle River. He caused many of his clients to form fictitious partnerships or corporations that existed in name only and had no business purpose other than to falsely reduce the clients’ tax liability.
Dunich-Kolb prepared false and fraudulent business returns for clients’ fictitious businesses by fabricating and inflating business expenses, such as advertising, travel and other miscellaneous expenses, in order to generate false and fraudulent business and partnership losses, which he then used to substantially reduce taxpayers’ taxable income on their individual federal income tax returns.
He falsified clients’ 2007, 2008, 2009, 2010 and 2011 individual federal income tax returns by fabricating and inflating deductions for unreimbursed employee business expenses, including home office, vehicle mileage and fuel expenses.
Dunich-Kolb caused these false and fraudulent individual federal income tax returns to be filed with the IRS, resulting in a total tax loss of more than $1.6 million for 10 clients.
Dunich-Kolb also falsified his own personal federal income tax returns for tax years 2007, 2008, 2009 and 2010. For these tax years, Dunich-Kolb’s client invoices reflected that he charged his clients an annual total of approximately $600,000 to $860,000 per year. Dunich-Kolb claimed approximately zero tax due and owing for tax years 2007 and 2008 and tried to obtain refunds for prior year tax payments that he never made, and substantially offset his tax liabilities for tax years 2009 and 2010 by claiming false credits for prior year tax payments that he never made.
Each of the nine tax counts carries a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to the indictment.
The charges and allegations in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: TBA