Richland Tax Return Preparer Sentenced To 6 Months in Federal Prison for Preparing False Tax Returns

Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Jonathon F. Schumann, age 49, of Richland, Washington, was sentenced today after having pleaded guilty on November 5, 2020, to three counts of aiding and assisting in the preparation and filing of false income tax returns. United States District Judge Salvador Mendoza, Jr. sentenced Schumann to a 6-month term of imprisonment, to run concurrent to a 1-year term of court supervision. Judge Mendoza ordered Schumann to pay $195,202 in restitution to the Internal Revenue Service (“IRS”), and to pay $50,000 of that amount no later than March 25, 2021.

According to information disclosed during court proceedings, Schumann operated a tax return preparation business under the name J’s Income Tax out of his residence in Richland, Washington. Through J’s Income Tax, Schumann prepared false tax returns for clients in Washington and Las Vegas, Nevada claiming fraudulent and inflated itemized deductions, including charitable contributions, personal property taxes and unreimbursed employee business expenses. By including these false items, Schumann’s clients received tax refunds from the IRS in excess of what they were entitled to receive. The fraudulent claims resulted in a loss of $195,202 to the IRS.

Acting United States Attorney Harrington said, “Schumann undermined the American tax system and the trust of taxpayers relying on his expertise. Tax preparers have a responsibility to legally and accurately prepare tax returns on behalf of their clients. The sentence imposed by the Court reflects the serious nature of his conduct. The United States Attorney’s Office for the Eastern District of Washington works closely with our partners at IRS Criminal Investigation to protect the law-abiding American public and the treasury by stopping this fraud.”

“While most return preparers provide excellent service, Mr. Schumann filed false and fraudulent returns that defrauded his clients, the tax-paying public, and the government,” said IRS Criminal Investigation Acting Special Agent in Charge Steven M. Slazinik. “Return preparer fraud continues to be a priority for IRS Criminal Investigation and if you suspect fraudulent activity from your return preparer, you can report it at www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity”

This case was investigated by IRS Criminal Investigation. This case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.