Flint Tax Return Preparer Pleads Guilty To Aiding And Assisting In Presenting False Tax Returns
A resident of Flint, Michigan, pleaded guilty on June 5, 2014, to aiding and assisting in the preparation and filing of fraudulent tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today. McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Charles Sander, III, pleaded guilty before U.S. District Judge Terrence G. Berg.
According to court records, Sanders owned and operated SBC Tax Service Corporation, a return preparation business in Flint, Michigan. Sanders falsely held himself out to be a Certified Public Accountant. For the tax years 2008 and 2009, Sanders prepared over 200 individual income tax returns, along with their accompanying schedules that were then submitted to the Internal Revenue Service. An audit of at least 36 of the returns he filed for 2008 and 2009 contained false and fraudulent information such as federal fuel tax payments, medical deductions, personal and real property tax deductions, mortgage interest, charitable contributions and unreimbursed employee expenses. These false items resulted in higher refund payments to Sanders’ clients. Sanders kept a fee of between $900 and $4,000 per tax return.
Sanders’ sentencing was set for October 9, 2014 at 2:30 pm. He faces a maximum term of imprisonment of three years and a maximum fine of $250,000. In addition, he will be required to pay restitution to the IRS.
The case was investigated by special agents of the IRS Criminal Investigation Division.