Local Tax Return Preparer Sent to Prison for Fraudulent Refund Scheme

HOUSTON – A tax return preparer who operated a local business under various names has been ordered to federal prison for willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced acting U.S. Attorney Abe Martinez. Albert Bobby Daniels Jr. pleaded guilty Aug, 3, 2017.

Today, U.S. District Judge Alfred H. Bennett handed Daniels a 21-month sentence to be immediately followed by a year of supervised release. He was further ordered to pay $257,590 in restitution to the IRS.

According to the criminal information and plea agreement filed in the record of the case, Daniels was in the business of preparing income tax returns and operated that business under various names including Home Based Business Tax Services in Houston. Daniels admitted he willfully added numerous false deductions and credits to 45 client income tax returns without their knowledge in order to inflate refunds by approximately $257,590.

The sentencing hearing today revealed that his motive was to develop a reputation for getting large client refunds, which could generate more fees.

Daniels was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The Austin office of IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.