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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Pennsylvania

FOR IMMEDIATE RELEASE
Thursday, January 29, 2015

Tax Preparer Charged In Tax Fraud Scheme

PHILADELPHIA - David Nixon, 50, of Philadelphia, Pennsylvania, was charged today by superseding indictment with 84 counts of aiding and assisting in the preparation of materially false income tax returns, announced United States Attorney Zane David Memeger.

 

According to the superseding indictment, Nixon, the owner of Economy Tax Services, prepared materially false federal income tax returns for tax years 2007 through 2009 which included fraudulent credits for children, earned income, tuition and fees, and residential energy efficiency property; incorrect filing status; and false or falsely inflated Form 1040 Schedule A deductions for charitable contributions and employee business expenses.  The prepared and filed returns reduced the amount of tax owned by Nixon's clients and increased the amount of the refunds to the clients.  The indictment alleges that as the result of the false and fraudulent income tax returns, Nixon's clients received more than $200,000 in fraudulently inflated refunds.

 

If convicted the defendant faces a maximum possible sentence of 252 years of in prison, a fine of $21 million, one year of supervised release, and a special assessment of $8,400.

 

The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.

 

An indictment or Information is only an accusation. A defendant is presumed innocent unless and until proven guilty.

Topic(s): 
Tax
Updated February 4, 2016