FOR IMMEDIATE RELEASE
March 28, 2014
CAMDEN, N.J. - A Bridgeton, N.J., tax preparer today admitted he knowingly failed to report more than $300,000 diverted from his tax preparation service for his personal use, U.S. Attorney Paul J. Fishman announced.
William Jones, 67, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of income tax evasion.
According to documents filed in this case and statements made in court:
Jones admitted that he operated Your Financial Services and PLM Tax Services, both Bridgeton businesses that provided tax return preparation and payroll services for their clients. Your Financial Services provided refund anticipation loans backed by Refund Advantage, a company that processed income tax returns and provided refund anticipation loans for smaller tax offices.
From 2007 through 2010, Jones offered Your Financial Services’ clients refund anticipation loans processed by Refund Advantage for which Jones received fees and additional yearly incentives. Since Your Financial Services was a Schedule C business, Jones was required to report the income generated by Your Financial Services on his U.S. individual income tax return.
However, for the years 2007, 2008, 2009, and 2010, Jones only reported to the IRS Form W-2 wages, property tax information, and interest and dividend income, omitting all of the diverted payments from Refund Advantage made to Your Financial Services. He admitted that he deposited the business receipts into his personal bank account and used the money for personal expenditures.
From 2007 through 2010, Jones admitted that he diverted a total of $310,248 in gross receipts of Your Financial Services into his personal bank account. He would have owed the government $90,266 in taxes had he reported the additional gross receipts on his income tax returns.
The charge to which William Jones pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 1, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Camden