Tax Preparer Sentenced To Prison
Tampa, FL – U.S. District Judge Steven D. Merryday sentenced Tyree Middleton (38, Riverview) today to ten months in federal prison for preparing fraudulent income tax returns. The Court also ordered him to pay restitution to the Internal Revenue Service, in the amount of $8,000. Middleton was indicted on January 14, 2014. He pleaded guilty on July 1, 2014.
According to court documents, Middleton owned and operated Middleton Financial, LLC, a tax preparation and consulting business located in Tampa. As part of his tax preparation business, Middleton prepared and filed numerous federal income tax returns, for tax years 2008 and 2009, claiming the First Time Homebuyer Credit (“FTHC”) on behalf of his clients. Included with the filings were Internal Revenue Service (“IRS”) were Forms 5405, which laid out each taxpayer’s qualification for the credit.
In many of the returns filed by Middleton, the information to support the FTHC was materially false, in that the clients and/or the homes themselves did not actually qualify for the FTHC. Despite not qualifying for the credit, Middleton falsely represented to the IRS that the taxpayer was purchasing a specific home, which the taxpayer never purchased. Middleton filed dozens of fraudulent IRS Forms 5405 requesting over $270,000 in FTHC funds for his taxpayer clients.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Matthew Jackson.