TAX PREPARER SENTENCED FOR FALSE CLAIMS, TAX EVASION, AND OBSTRUCTION
JAMES W. NELSON, age 60, a resident of LaPlace, Louisiana, was sentenced yesterday to 37 months imprisonment by U. S. District Court Judge Lance M. Africk for filing false claims against the United States, tax evasion, and obstruction of justice, announced U. S. Attorney Jim Letten. In addition to the term of imprisonment, Judge Africk imposed three (3) years of supervised release following the term of imprisonment during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any of the terms of his supervised release, and a $300 special assessment.
According to court documents, from approximately 1992 through the present, NELSON, was engaged in the business of preparing and filing income tax returns at his business, Nelson’s Computerized Tax Service. NELSON’s business had multiple offices throughout the New Orleans, Louisiana metropolitan area. From 2007 through 2011, NELSON, or his employees under his direction, prepared and filed false income tax returns for his customers, which contained false Schedule C amounts, false Schedule A deductions, and other false forms, fraudulently claiming tens of thousands of dollars in refunds they were not entitled to.
Additionally, according to court documents, in the years 2006, 2008, and 2009, NELSON received taxable income to which there was due and owing approximately $21,051 in taxes to the United States. NELSON willfully evaded paying this amount. Finally, in or about June 2010, NELSON obstructed justice by knowingly falsifying a document to be used to support one of his customer’s fraudulent tax returns and the false Schedule C amounts contained in the return.
In addition to the term of imprisonment, NELSON will also have to pay approximately $111,497.80 in restitution to the United States Internal Revenue Service or his wrongful conduct. Finally, NELSON will be prohibited from owning or being employed by a tax preparation business in the future.
The case was investigated by agents from the Internal Revenue Service Criminal Investigation Division and the United States Secret Service.
The case was prosecuted by Assistant U. S. Attorney Matt Chester.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims or have knowledge of waste, abuse, or allegations of mismanagement involving disaster relief operations, contact the National Center for Disaster Fraud toll free at: (866) 720-5721. You can also fax information to: (225) 334-4707 or e-mail it to: firstname.lastname@example.org