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Examples of taxpayers that end up with criminal tax issues

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Examples of taxpayers that end up with criminal tax issues

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    IRS Criminal Investigations usually lead to criminal tax convictions. Below are some recent statistics:

    FY 2011FY 2010FY 2009
    Investigations Initiated472047064121
    Prosecution Recommendations341030342570
    Information/Indictments299826452335
    Total Convictions235021842105
    Total Sentenced*220621722229
    Percent to Prison81.7%81.5%81.2%

    *Sentences include confinement to federal prison, halfway house, home detention, or some combination thereof. The IRS often prosecutes high profile taxpayers in order to send a message to all citizens that the IRS will prosecute tax crimes.

    Below are four examples from this list with a brief summary of the offense:

    California Return Preparer Sentenced for Defrauding IRS of Nearly $8 Million

    • Mario Placencia pleaded guilty to one count of submitting false documents to the IRS to validate false deductions and two counts of aiding and assisting the preparation of fraudulent tax returns.
    • He was sentenced to 60 months in prison and ordered to pay $1,213,789 in restitution to the IRS.

    Former Partner at Major International Accounting Firm Sentenced for Tax Crimes

    • Stephan A. Favato was convicted of one count of aiding and assisting in the preparation and filing of false income tax returns and one count of corruptly attempting to obstruct and impede the Internal Revenue laws.
    • He was sentenced to 18 months in prison.

    California Tax Preparer Sentenced for Presenting False Income Tax Returns

    • Bertha Renell Vaughn pleaded guilty to aiding and assisting in the presentation of false income tax returns.
    • She was sentenced to 30 months in prison and ordered to pay more than $1 million in restitution to the IRS.

    California Tax Return Preparer Sentenced for Filing Fraudulent Tax Returns

    • Simon Jenkins pleaded guilty to preparing and filing false tax returns.
    • He was sentenced to 15 months in prison and ordered to pay $238,024 in restitution to the IRS.