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Monday, November 14, 2016

North Carolina Tax Return Preparer Sentenced to Prison for Preparing and Filing False Tax Returns with the IRS

A Guilford County, North Carolina resident was sentenced to serve 18 months in prison today for aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand of the Middle District of North Carolina. 

Marvin Flythe admitted that he ran “TAXHOVA,” a tax preparation business in Greensboro, and maintained a YouTube video channel on which he advertised TAXHOVA.  Between January 2012 and January 2015, Flythe prepared and filed numerous individual income tax returns for clients on which he reported false business losses and false unreimbursed employee business expenses.  Flythe admitted to filing at least 36 false returns for clients, for which $130,949 in fraudulent refunds were paid.  Flythe also admitted to filing false personal returns which underreported his income for tax years 2011, 2012 and 2013 and failing to file his 2014 return.

Flythe pleaded guilty in August to four counts of preparing false individual income tax returns for clients.  In addition to the term of prison imposed, Flythe was ordered to serve one year of supervised release and to pay restitution in the amount of $105,128.04 to the Internal Revenue Service (IRS).

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina, who prosecuted this case.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website

Press Release Number: 
Updated December 20, 2016