Las Vegas Tax Return Preparer Receives Federal Prison Sentence
Las Vegas, Nev. - A man who owned and operated a tax return preparation business in Las Vegas was sentenced to federal prison today for making false representations on a client's federal income tax return, announced Daniel G. Bogden, United States Attorney for the District of Nevada. PAUL M. VANCE, age 50, of Las Vegas, Nevada, pleaded guilty on August 12, 2003, to one count of Aiding or Assisting in the Preparation of False Income Tax Return, and was sentenced today by United States District Court Judge Phillip M. Pro to 18 months in prison and ordered to pay $120,224 in restitution to the Internal Revenue Service.
According to the court record, during the calendar years 1996 through 1998, defendant PAUL VANCE operated "Advanced Accounting Systems," a business in Las Vegas where he prepared an individual income tax return that falsely stated a taxpayer was entitled to credits and deductions, such as "head of household" filing status, the earned income tax credit, and dependent and child care expenses, when he was not. The false statements significantly reduced the taxpayer's total tax liability. The defendant admitted that he knew the taxpayer was not entitled to the reduction and that he made the false representations willfully.
PAUL VANCE was also ordered to serve one year of supervised release following his release from prison, during which time he will be prohibited from engaging in employment consulting and from associating with any tax business. He was allowed to self-surrender to the federal prison facility to which he is designated on March 9, 2004.
Erick Martinez, Special Agent-in-Charge of IRS Criminal Investigation for Nevada states, "IRS Criminal Investigation focuses on protecting revenue by identifying, investigating and prosecuting abusive return preparers. While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the taxpaying public and their own clients." Special Agent-in-Charge Martinez cautions taxpayers to choose carefully when hiring a tax preparer.
The case was investigated by Special Agents with IRS Criminal Investigation and was prosecuted by Assistant United States Attorney Crane M. Pomerantz.