Tax Preparer Sentenced To 30 Months In Federal Prison For Preparing Fraudulent Returns
Defendant Operated “Instant Tax Services” in Dallas
DALLAS — George Chukwuka Chima was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 30 months in federal prison and ordered to pay $776,341 in restitution, following his guilty plea in December 2012 to one count of aiding and assisting in the preparation of fraudulent federal income tax returns. Judge Fitzwater ordered that Chima, who has been on bond, surrender to the Bureau of Prisons on June 4, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Chima, a resident of Irving, Texas, operated a tax service business under the name “Instant Tax Services,” in Dallas. When Instant Tax Services prepared federal tax returns, Chima placed, or caused others to place, false and fraudulent claims for the First Time Home Buyer Credit (FTHBC) and Fuel Tax Credit (FTC) on numerous returns in order to fraudulently obtain refunds from the Internal Revenue Service (IRS). Chima admitted that he caused tax returns to include these false FTHBC and FTC credits that were completely fictitious and fraudulent, resulting in refund and credit overpayments by the IRS and unearned and fraudulent tax preparation fees paid to Chima.
Chima admitted, according to the factual resume, that from January 1, 2009, through April 15, 2010, he electronically filed, and caused others to electronically file, a total of approximately 795 individual income tax returns with the IRS. Of that number, approximately 505 contained fraudulent and false information, which caused a total loss to the IRS of approximately $776,341.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney David Jarvis was in charge of the prosecution.