Saturday, August 5, 2023
HomeBusinessNew Jersey Tax Preparer Arrested for Alleged Fraudulent Claims of Over $124...

New Jersey Tax Preparer Arrested for Alleged Fraudulent Claims of Over $124 Million

A New Jersey tax preparer has been arrested over alleged fraudulent claims for COVID-19-related employment tax credit. Leon Haynes, of Teaneck, New Jersey, allegedly sought over $124 million from the IRS by submitting over 1,000 fraudulent tax returns.

In the course of the pandemic, Congress approved an worker retention tax credit score often called the “worker retention credit score” (ERC) to assist small companies scale back the employment tax they owed to the IRS. One other credit score was additionally approved to compensate companies for wages paid to staff who had been unable to work attributable to COVID-19, often called the “paid sick and household go away credit score.”

Based on court docket paperwork, Haynes allegedly exploited these applications designed to assist small companies severely impacted by the pandemic. From November 2020 to Might 2023, appearing as a tax preparer, Haynes is alleged to have ready and submitted roughly 1,387 false types to the IRS claiming COVID-related tax credit on behalf of himself and his purchasers.

The criticism alleges that Haynes informed his purchasers that the federal government was distributing COVID-relief cash for companies and that they had been eligible just because they operated a enterprise. With out consulting along with his purchasers, Haynes then allegedly submitted types to the IRS on behalf of their companies that grossly overstated the variety of staff and the quantity of wages paid.

Haynes allegedly submitted equally false types for 3 of his personal firms. Based mostly on these misrepresentations, Haynes’ conduct allegedly sought roughly $124,751,995 in tax refunds on behalf of his firms and quite a few different companies in his purchasers’ names.

Because of this, the IRS allegedly mailed Haynes a number of tax refund checks totaling $1,007,966 for his personal firms. In complete, the IRS allegedly disbursed $31.6 million in refunds to Haynes’ purchasers and himself based mostly on the false tax types that Haynes submitted. The criticism additionally alleges that Haynes charged his purchasers a price of as much as 15% of the refund they acquired.

If convicted, Haynes faces a most penalty of three years in jail for every depend of aiding and aiding within the preparation of a false return and 20 years in jail for mail fraud.

The case underscores the necessity for small companies to train due diligence of their dealings with tax preparers, notably in periods of emergency aid, to make sure that all claims and filings are authorized and legitimate.

For the newest, comply with us on Google Information.

Picture: Envato Components



Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments