Charleston County Man Pleads Guilty to Tax Charges
For Immediate Release
U.S. Attorney's Office, District of South Carolina
CHARLESTON, SOUTH CAROLINA — David Washington, 55, of Charleston, pleaded guilty in federal court to aiding and assisting in the preparation of false and fraudulent income tax returns containing false deductions.
The evidence presented at the guilty plea hearing established that Washington operated a fraud scheme wherein he would claim false business losses for taxpayers whose returns he was preparing to offset reported income. Investigators determined that Washington’s customers provided correct tax-related information to Washington with the expectation that he would accurately file the returns for the customers. The amount of the business loss fraudulently claimed by Washington generated a substantial tax refund to which the taxpayers were not entitled and resulted in a significant loss of tax revenue to the United States Government.
“The vast majority of tax preparers, like taxpayers, are truthful and honest in their work product, calculations, and submissions,” said U.S. Attorney Adair F. Boroughs. “Those who seek to violate the tax laws, however, will face this Office and our federal partners at the IRS as we will continue to investigate and vigorously prosecute those who violate the law.”
"The IRS and Department of Justice are working vigorously to stop abusive tax schemes, whose activities unfairly shift the tax burden to honest American taxpayers," said Donald “Trey” Eakins, Special Agent in Charge Charlotte Field Office of the IRS-Criminal Investigation Division. "Today's court action should serve as a reminder to taxpayers, to be wary of any scheme by a tax preparer which falsely adds expenses to their tax returns for the sole purpose of offsetting their income.”
Washington is subject to a maximum sentence of three years in federal prison and a fine of $250,000.00. United States District Judge David C. Norton accepted the guilty plea and will sentence Washington after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
The case was investigated by the IRS. Assistant U.S. Attorney Amy F. Bower prosecuted the case.
Derek Shoemake, Public Information Officer, U.S. Attorney’s Office, firstname.lastname@example.org, (843) 813-0982.
Updated October 27, 2022