Waterbury Tax Preparer Sentenced to Federal Prison for Filing Hundreds of False Tax Returns
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARCUS FOX, 42, of Waterbury, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 12 months of imprisonment, followed by one year of supervised release, for preparing and filing hundreds of false tax returns.
According to court documents and statements made in court, FOX prepared tax returns for individuals in his community, many of whom were associated with a church he attended. From approximately 2009 through 2012, FOX prepared and filed more than 900 tax returns with the U.S. Internal Revenue Service on behalf of clients. A number of tax returns that FOX prepared contained false information, including false childcare credits, education credits, American opportunity credits, itemized deductions, education expenses, charitable contributions, unreimbursed employee business expenses, hobby expenses, and childcare costs. The false returns resulted in clients receiving substantial refunds to which they were not entitled. FOX typically received payment of between $200 and $350 for his tax preparation services.
In addition, beginning in approximately 2011, FOX falsified a number of returns in a manner that allowed FOX to secure a greater payout for himself without his clients' knowledge. FOX would prepare a client tax return with significant falsified credits or expense deductions, which resulted in a fraudulent claim for a substantial refund. The tax return would be e-filed with the IRS with instructions to split payment of the large refund between the client and FOX, with FOX receiving a substantial portion of the payment. FOX would also prepare a second tax return, which he never filed, but instead provided to his client to hide the ongoing scheme.
The government suffered a tax loss of more than $2.2 million as a result of this scheme.
On March 31, 2016, FOX pleaded guilty to two counts of aiding and assisting the filing of a false tax return.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.