Owner of New Jersey Tax Return Preparation Business Sentenced to Prison for Tax Fraud

A Keasbey, New Jersey, tax return preparer was sentenced to 29 months in prison today for filing false tax returns on behalf of clients and failing to file his own tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Craig Carpenito of the District of New Jersey.

According to documents filed in this case and statements made in court, David Patterson, 38, owned and operated D&D Tax Service LLC, a tax preparation business.  Through the firm, he prepared fraudulent tax returns for tax year 2012 in which he knowingly falsified his clients’ medical and dental expenses, gifts to charity, and unreimbursed employee expenses.  At times, he took portions of his clients’ tax refunds and deposited them without authorization into bank accounts he maintained or controlled.  Patterson also failed to file individual income tax returns for himself, and to pay federal income taxes, for 2013 through 2015. 

In addition to the prison term, Judge Salas sentenced Patterson to one year of supervised release and ordered restitution of $290,321 to be paid to the IRS.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Eric Powers and Assistant U.S. Attorney Jonathan M. Peck, who prosecuted this case.

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