ROSLYNN R. MAUSKOPF, United States Attorney for the Eastern District of New York, and GLENDA M. PAPPILLION, Acting Special Agent-in-Charge, Internal Revenue Service - Criminal Investigation, New York, today announced that late yesterday a federal jury in Brooklyn returned a guilty verdict convicting YB-LEM OSKOWITZ, a tax return preparer and the former operator of Quick Tax Service, on charges of tax fraud. Her business was located at 110-20 Jamaica Avenue, Queens, New York.

The ten-count indictment charged that in late 1998 and early 1999, OSKOWITZ, who was known at the time as "Mary" or "Maria," assisted in the preparation of ten false tax returns that were ultimately filed with the Internal Revenue Service. The government alleged that all ten tax returns had similar characteristics -- they all falsely stated that the taxpayer's only income came from self-employment as a "babysitter" or as a "child care" provider, and reported only self-employment income in amounts between $6,000 and $9,500. Each tax return also claimed the Earned Income Credit, a credit intended for low-income workers. The credit reduces the amount of federal tax owed and will result in the issuance of a refund check by the IRS if the credit exceeds the taxes owed.

On each of the ten returns, the tax on the self-employment income was significantly less than the tax credit, resulting in a claim for a large refund. However, at trial, the government presented evidence that the taxpayers were not self-employed, that the amounts of reported income were false, and that OSKOWITZ knew this information was false. OSKOWITZ nonetheless advised the taxpayers that they could legally claim the tax credit and receive significant tax refunds. Several of the taxpayers testified at trial that they had seen, or had heard about, flyers and advertisements distributed by OSKOWITZ that guaranteed everyone maximum refunds from the government, with such claims as "GET YOUR TAX REFUND HERE - DON'T BE FOOLED BY OTHERS," and "EVERYONE QUALIFIES."

"The message here is plain and simple," stated United States Attorney ROSLYNN R. MAUSKOPF. "If you are offered advice by a tax preparer that sounds too good to be true, don't believe it."

After five days of trial which included tape recorded conversations between OSKOWITZ and undercover IRS agents posing as clients -- and five hours of deliberation, the jury returned a verdict convicting the defendant on eight counts of assisting in the preparation and filing false tax returns.

When sentenced by United States District Judge Nicholas G. Garaufis on May 7, 2004, OSKOWITZ faces a maximum sentence of three years of imprisonment and a $100,000 fine on each of the eight counts of conviction.

The government's case was prosecuted by Assistant United States Attorney Jeffrey A. Goldberg.

The Defendant:

YB-LEM OSKOWITZ

94-15 115th Street

Richmond Hill, NY 11419