Bourbonnais Tax Preparer Sentenced to 24 Months in Prison for Filing False Income Tax Returns

Peoria, Ill. – A Bourbonnais, Ill., man, Robert J. Deangelo, has been sentenced to two years in prison for filing false income tax returns. On May 4, Senior U.S. District Judge Michael M. Mihm ordered that Deangelo, 63, serve 24 months in federal prison, and one year of supervised release following his release from prison. Deangelo was ordered to report on July 14, 2015, to the federal Bureau of Prisons to begin serving his sentence. Deangelo was also ordered to pay restitution in the total amount of $62,947.00 to the IRS, as well as a $1,200.00 special assessment. In addition, Deangelo was ordered to pay the cost of prosecution in the amount of $5,962.39 to the United States.

On Dec. 10, 2014, a jury convicted Deangelo of 12 counts of filing false income tax returns. From 2007 to 2010, DeAngelo provided tax services from his home office, on St. Pauls Drive, Bourbonnais, that included the preparation and filing of tax returns for hundreds of clients. During the trial, the government presented evidence to establish that for the 2008, 2009, and 2010 tax years, DeAngelo falsely underreported his tax business’s gross receipts and inflated its expenses. Despite receiving tens of thousands of dollars in income during this time, DeAngelo paid no federal income tax for those years, and in fact, claimed an earned income credit. For tax years 2008, 2009, and 2010, DeAngelo failed to pay more than $30,000 in federal income taxes that were due and owing. During this time period, DeAngelo also created false employee business expense deductions, namely unreimbursed business mileage, for his tax return clients, without their knowledge. The false income tax returns provided larger refunds for DeAngelo’s clients and resulted in an overall tax loss of more than $50,000.

During the jury trial, DeAngelo testified on his own behalf.  At sentencing, Judge Mihm found that DeAngelo’s trial testimony was “outrageous” and that he committed perjury during his trial. Judge Mihm cited the perjured testimony and the need to deter other paid tax preparers from committing tax fraud as reasons in support of the sentence of imprisonment. Judge Mihm also prohibited DeAngelo from preparing tax returns for other individuals during the period of his supervised release.

The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges were investigated by the Internal Revenue Service Criminal Investigation Division.