CONTACT: Gina Balaya (313) 226-9758

                      Stephen Moore, IRS CI (313) 628-3307
 

FOR IMMEDIATE RELEASE:
 

    United States Attorney Jeffrey G. Collins and Mark Kroczynski, Special Agent in Charge of Internal Revenue Service Criminal Investigation, announced that a Flint income tax preparer was indicted by a federal grand jury on March 5, 2003 on charges of knowingly preparing false federal income tax returns and obstructing the Internal Revenue Service.

    Named in the 82-count indictment was Mario J. Daniels, 46, of Flint, doing business as Mario J. Daniels and Associates, P.C. Mr. Collins stated that "The indictment charges that Mr. Daniels counseled and advised the preparation of false individual income tax returns for sixty taxpayers during the years 1998-2000, knowing that the returns claimed charitable contribution deductions, business expense deductions, and/or child care credits in amounts that the taxpayers were not entitled to claim, which totaled, in charitable contributions alone, of over $625,000. It also charges that Mr. Daniels attempted to obstruct the Internal Revenue Service by providing his clients with false copies of the tax returns actually filed; instructing his clients not to respond to inquiries by the IRS; altering his own business records before providing them to the IRS; and providing his clients with false documents to be given to the IRS during audits of their tax returns."

    Mr. Kroczynski stated that "Criminal investigations involving unscrupulous tax return preparers have more than doubled in the last year. It is important that people choose their return preparer wisely. You may want to avoid someone who guarantees refunds or claims that they can obtain larger refunds for you than other preparers. Their fee should not be based on the percentage of the amount of your refund. No matter who prepares your tax return, the taxpayer is ultimately responsible for the content of the return. Consequent, the taxpayer is also responsible for the repayment on the fraudulent refunds received and the all associated penalties and interest, in addition to possibly being exposed to potential criminal charges."

    United States Attorney Collins added that "If convicted, Mr. Daniels may be sentenced to as much as three years in prison and a fine of as much as $250,000 on each of the 82 counts of the indictment. Any sentence will be imposed under the United States Sentencing Guidelines according to the nature of the offense and the criminal background, if any, of the defendant. Mr. DANIELS will be directed to report for arraignment on this indictment on a date to be set by the United States District Court in Flint."

    The case was investigated by the Criminal Investigation Division of the Internal Revenue Service.

    An indictment is only a charge, and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.