Tax Preparer Sentenced For Preparing False Tax Returns
PHILADELPHIA – David Nixon, 50, of Philadelphia, PA, was sentenced today to 15 months in prison for preparing fraudulent income tax returns. U.S. District Court Judge Mary McLaughlin handed down the sentence for Nixon’s conviction, by a federal jury, on 63 counts of fraud. In addition to the prison term, Nixon must also serve six months of house arrest, followed by one year of supervised release, and must pay a $6,300 special assessment.
Evidence presented during the trial showed that Nixon, as the owner of Economy Tax Services at 3731 Stanton Street in Philadelphia, prepared materially false federal income tax returns for his clients for tax years 2007 through 2009. The fraudulent returns included credits for children, earned income credit, tuition and fees, residential energy efficiency credits, incorrect filing status, and false or falsely inflated Form 1040 Schedule A deductions for charitable contributions and employee business expenses. As a result of the false and fraudulent income tax returns prepared by Nixon, the government contended that the IRS was defrauded of more than $200,000 in fraudulently obtained refunds.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.