According to a Department of Justice press release, a Kansas man recently pleaded guilty to filing false income tax returns on behalf of his clients. This case exemplifies the serious consequences of engaging in tax fraud and the importance of ensuring your tax filings are accurate and truthful. If you have filed a tax return that was knowingly false or have failed to file a tax return for one or more years, it is critical to discuss your situation with an experienced tax defense attorney and discuss how to arrive at a potential resolution.
Defendant Fraudulently Manipulated Client Tax Returns to Illegally Reduce Tax Liabilities, Sometimes Generating Large Refunds
Court records reveal that Hophine Bwosinde, of Lenexa, Kansas, operated a tax preparation business, Ambroseli Professional Services. Between tax years 2018 and 2022, Bwosinde prepared and filed false income tax returns for his clients by inflating business expenses, claiming losses from businesses that didn’t exist, and by reporting negative income. These steps significantly underreported his clients’ taxable income, fraudulently reducing their federal tax liability and, in many cases, generating fraudulent tax refunds.
By making up or exaggerating deductions and losses for his clients, Bwosinde not only defrauded the U.S. government but also exposed his clients to potential audits, criminal tax investigations, penalties, and other legal consequences. His actions resulted in an estimated tax loss of $1.5 million.
The defendant will be sentenced at a later date but faces up to three years in prison. Additionally, he may be ordered to serve a period of supervised release upon the completion of his sentence. Lastly, the defendant may be ordered to pay restitution, making up the tax loss that his illegal activity caused.
Seeking the Assistance of an Experienced Tax Professional
The case of Hophine Bwosinde, above, clearly shows the potentially serious results of filing false tax returns, whether as a tax preparer or as an individual or business taxpayer. If you have concerns about past tax returns or believe your returns may not withstand IRS scrutiny upon examination, you should consult with a seasoned tax attorney. An experienced lawyer can help uncover the important facts of your case, identify any exposures, and if necessary, help develop a plan to bring you back into compliance with federal and state tax laws.
