United States Attorney James T. Jacks
Northern District of Texas

FRIDAY, JULY 2, 2010
http://www.usdoj.gov/usao/txn/

LOCAL TAX PREPARER SENTENCED TO 42 MONTHS
FOR PREPARING FRAUDULENT TAX RETURNS

Defendant Ran Delano Watson Services From
His Residences in Garland and Mesquite, Texas

DALLAS — Delano Watson was sentenced today by U.S. District Judge Barbara M.G. Lynn to 42 months in prison, announced U.S. Attorney James T. Jacks of the Northern District of Texas. In March 2010, a federal jury convicted Watson, a tax preparer, on 11 counts of aiding and assisting in the preparation and presentation of a false and fraudulent return. Judge Lynn ordered that Watson surrender to the Bureau of Prisons on August 24, 2010.

The government presented evidence at trial that Delano Watson, a resident of Mesquite, Texas, did business as Delano Watson Services and had prepared and filed federal income tax returns for individual taxpayers since 1999, from his residences in Garland and Mesquite, Texas.

The government presented further evidence that Watson submitted false and fraudulent returns representing taxpayers were entitled to claim certain deductions, when he well knew, they were not entitled to claim the deductions. Watson fraudulently inflated taxpayers’ deductions and credits, often without their knowledge, to inflate their tax refunds. Watson did this so that his customers would be happy with their returns and would refer their friends.

Further evidence at trial revealed that many of Watson’s clients were subsequently audited by the IRS and were required to repay what they owed to the IRS, in addition to substantial penalties and interest. Watson continued this scheme over several years, making at least $40,000 - $60,000 per year through his tax preparation business.

The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Amy J. Mitchell and Cara Foos Pierce.

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