Posted by Magdalena Jasionowska.
Precision and honestly are fundamental when it comes to accounting. Any error can have some consequences, but it is important to remember that fraud is a serious crime. Here is a brief summary of the most recent tax fraud cases.
Christopher Haynes, a franchise owner of Liberty Tax Service has been preparing false income tax returns in order to increase clients refunds at three franchises. A federal court has permanently barred the franchisee for all three locations, and Christopher Paul Haynes of Irmo, South Carolina, from preparing federal tax returns for others. Christopher Haynes and his employees prepared returns that included misstatements such as false or increased Schedule C income and expenses, false filling statuses, number of dependents and inappropriate employee business expenses. Haynes’s Liberty Tax Service offices have prepared more than 9,700 federal income tax returns since 2010 and and for that reason they have to provide the government the list of all their costumers whom he and his employees prepared a return from 2010 till todays day.
Nicole Coleman,34, the owner and operator of Comunnity Tax Assosociates was sentenced on Wednesday to 36 months in prison for obtaining more than $1.65 million in fraudulent tax refunds. “Coleman, filed federal income tax returns for herself and clients and knowingly made false entries to inflate refunds for clients. Coleman then took a portion of the refunds as a fee.” She, definitely harmed her clients, who trusted her to prepare and file their income tax returns.
An attorney William Doonan, 69, who operated a tax preparation in Bronx, New Yoork, has pleaded guilty to charges related to his participation in filing fraudulent returns and falsely claiming more than $6 million in bogus deductions. Since 2009, Doonan regularly prepared and filled clients returns that were fraudulent. He’s been adding false medical expenses, state and local taxes, home mortgage interest deductions, charitable gifts and other expenses.
In conclusion, fraud, embezzlement, and misappropriation can occur in every type of business, even in accounting, the most trusted profession.
Magdalena is an accounting student at the Feliciano School of Business, Montclair State University.