aurora return preparer sentenced to prison for preparing false tax returns
DENVER – Elizabeth A. Eurioste, age 64, of Aurora, Colorado was sentenced earlier this week by U.S. District Court Judge R. Brooke Jackson to serve 6 months in federal prison for aiding or assisting in the preparation of a false individual federal income tax return, U.S. Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announce. Following her prison sentence, Eurioste, was ordered to spend 1 year on supervised release.
Eurioste was indicted by a federal grand jury in Denver on April 9, 2013. She pled guilty on February 14, 2014 to one count of aiding or assisting in the preparation of a false individual federal income tax return. She was sentenced on July 15, 2014.
Eurioste has been preparing individual and business income tax returns since 1971. For purposes of her plea agreement, the period of relevant conduct covered is tax years 2004 through 2007, and she worked out of her own business, Eurioste Accounting, Inc. She entered false deductions, expenses, business losses, and underreported income and gains on her clients’ tax returns to reduce the amount of tax due and owing.
Eurioste repeatedly created the false entries on income tax returns for the years covered by the indictment and she had approximately 1200 clients. The total amount of tax loss resulting from Eurioste’s actions for tax years 2004 through 2007 was at least $400,000.
Particularly, on March 30, 2007, Eurioste prepared the individual income tax return for tax year 2006 for a married couple. She included false and unsupported deductions on their Form 1040 including a $3,000 capital loss, $93,950 loss from the sale of a business property, and $27,351 in itemized deductions. These were false entries that material affected the calculation of the tax due and owing. Eusrioste knew that entries on the income tax return she prepared were false and in violation of the internal revenue laws.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service. This case was prosecuted by Assistant United States Attorneys Anna Edgar and Suneeta Hazra.