Operator Of North Jersey Tax Preparation Business Pleads Guilty To Tax Fraud

NEWARK, N.J. – A Kissimmee, Florida, man today admitted preparing fraudulent income tax returns for himself and his clients, resulting in tax losses of over $320,000, U.S. Attorney Paul J. Fishman announced.

Sixto Rodriguez, 52, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to Count 1 and Count 6 of a second superseding indictment charging him with filing a false tax return on behalf of himself for tax year 2007 and aiding and assisting in the filing of a false and fraudulent tax return on behalf of another for tax year 2009.

According to documents filed in this case and statements made in court:

From 2007 through 2012, Rodriguez operated a tax preparation business in Teaneck, New Jersey, by the name of 1-2-3 Taxes. Rodriguez personally met with clients, prepared their individual income tax returns and filed the returns with the IRS.

Rodriguez admitted to inflating education credits, charitable donations, unreimbursed business expenses and rental losses that he knew his clients had not actually incurred. Rodriguez also admitted reporting only $1,600 of the $237,179 his business made in 2007. Altogether, Rodriguez caused tax losses of $321,061.

Both the false filing charges to which Rodriguez pleaded guilty carry a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 8, 2016.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorneys Daniel Shapiro and David M. Eskew of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense counsel: Miles Feinstein Esq., Clifton, New Jersey