Buffalo Man Pleads Guilty to Tax Charges
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Maung No, 25, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to preparation of false tax returns. The charge carries a maximum penalty of six years in prison, a fine of $100,000, or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant was employed as a tax return preparer for VPS Income Tax in 2011 and BTC Income Tax in 2012. The fee charged for an income tax preparation was 10% of a client’s refund amount plus bank fees.
In 2012, No prepared a 2011 tax year return for clients and claimed an Education Credit of $1,358, an American Opportunity Credit of $2,000 and a Federal Fuel Tax Credit of $183 without their knowledge. The defendant knew that the credits were false and that the clients were not entitled to claim such credits nor had the clients provided any such claim for the credits. As a result of No’s conduct, the clients received a larger federal income tax refund than they were entitled which resulted in a larger fee for BTC Income Tax. The total loss to the Internal Revenue Service was $3,543.
Between 2011 and 2012, No filed similar returns for 1,138 clients which resulted in losses to the IRS totaling $2,332,122.
The plea is the culmination of an investigation by Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.Sentencing is scheduled for November 4, 2014 at 12:30 p.m. before Judge Arcara.