SIOUX FALLS, S.D. (KELO.com) — The Internal Revenue Service’s Criminal Investigation
Division (IRS-CI) and the U.S. Attorney’s Office reminded taxpayers today to file
accurate tax returns and choose a tax preparer wisely. The nation’s tax season starts
on Friday, February 12, 2021, when the agency begins accepting and processing 2020
tax year returns.
U.S. persons are subject to tax on worldwide income from all sources. Most taxpayers
meet this obligation by reporting all taxable income and paying taxes according to the
law. However, those who willfully hide income should know that the IRS works across
its divisions to ensure the highest possible tax compliance. Taxpayers found to be
committing fraud may be subject to penalties including payment of taxes owed plus
interest, fines and jail time.
“As we approach the beginning of the tax return filing season, it is important for
taxpayers to be careful in selecting the tax professional who will prepare their return.
The IRS does not want individuals to become victims of an unscrupulous return
preparer,” said Acting Special Agent in Charge David Talcott at the Internal Revenue
Service – Criminal Investigation. “Each year, IRS-CI special agents and the U.S.
Attorney’s Office investigate and prosecute return preparer fraud, which includes adding
false deductions and credits in order to inflate refunds. This criminal activity affects
taxpayers, but has serious consequences for the unscrupulous preparer.”
“Tax preparers are supposed to be part of the gatekeeping system to ensure that our
tax laws are followed,” said U.S. Attorney Ron Parsons. “But some are unscrupulous
and take advantage of their clients to commit fraud and enrich themselves. Choose
wisely when seeking help in filing your taxes. It will save you a lot of grief.”
Tax return preparers are vital to the U.S. tax system. As of tax year 2018, 55 percent of
taxpayers used a paid preparer. Although most preparers provide honest and
professional services, there is a small number of dishonest preparers who set up shop
during filing season to steal money, personal and financial information from clients.
Taxpayers can avoid falling victim to unscrupulous preparers by following important
steps.
Tips when choosing a tax preparer:
• Look for a preparer who is available year-round in case questions arise after the
filing season.
• Ask if the preparer has an IRS Preparer Tax Identification Number (PTIN), which
is required for paid preparers.
• Inquire about the preparer’s credentials and check their qualifications.
• Ask about service fees. Avoid preparers who base fees on a percentage of their
client’s refund or claim to offer a bigger refund than their competition.
• Never sign a blank or incomplete return and review it before signing. Refunds
should go directly to the taxpayer, not the preparer.
For more tips on choosing a tax professional or to file a complaint against one, visit
IRS.gov. Taxpayers who suspect tax violations by a person or business, may report
it to the IRS using Form 3949A, Information Referral.
The IRS Criminal Investigation St. Louis Field Office and the U.S. Attorney’s Office
for the District of South Dakota are committed to protecting South Dakota taxpayers
from others cheating the U.S. tax system. Here are some examples of some of the
most egregious criminals that have been recently investigated and brought to justice:
• In August 2019, Isaiah Rangel was the owner of 1st Global Tax in Sioux Falls,
South Dakota. He was sentenced to two years in prison followed by 1-year
probation for preparing false tax returns. In perpetrating his scheme, he
prepared false Forms Schedule C and false Forms 1099 for fake businesses
to create large losses. Also, he entered dependents that were not his client’s
children to lower his client’s federal tax liability and increase their refunds.
• In January 2019, Jacques Eviglo was convicted by a jury and sentenced to 60
months in prison for false claims plus 108 months concurrent for wire fraud.
Eviglo was ordered to pay $2,543,286 in restitution. He operated Global
Income Tax Services in Sioux Falls, South Dakota. He prepared false income
tax returns by entering false Schedule A deductions such as charitable
contributions and unreimbursed employee expenses. He also prepared false
Forms Schedule C showing businesses his clients did not own to lower the
tax liability on his client’s tax returns. Lastly, he skimmed additional fees
ranging from $400 to $1,000 per client from the refunds unbeknownst to his
clients. Ultimately, he enriched himself by skimming an excess of $800,000 in
just a four-year period.
Comments