January 5, 12

NEWS / New York Return Preparer Pleads Guilty to Preparing False Tax Returns

WASHINGTON – The owner of a Dix Hill, N.Y., tax preparation business pleaded guilty today in U.S. District Court in the Eastern District of New York in Central Islip, N.Y., to endeavoring to obstruct the internal revenue laws and aiding in the preparation of false income tax returns, the Justice Department and Internal Revenue Service (IRS) announced today.

According to court documents, Howard Levine owned and operated Milaur Associates, also known as Milaur Inc. Many of the tax returns prepared by Levine for 2004 through 2009 were false and contained fictitious deductions, business expenses and corporate losses created by Levine. Levine admitted to preparing no fewer than 56 false returns, resulting in a tax loss of $620,844.

In order to obstruct and impede the IRS from determining his role in preparing the returns, Levine included false information in the paid preparer section of the return he prepared. Despite the U.S. District Court for the Eastern District of New York issuing an injunction in 2009 that barred Levine from preparing federal tax returns for anyone other than himself, Levine violated the injunction by continuing to prepare false returns.

Levine faces a potential maximum sentence of six years in prison and a fine of up to $500,000. U.S. District Judge Joseph F. Bianco, who is presiding over the matter, set a sentencing date of April 26, 2012.

The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey B. Bender of the Justice Department’s Tax Division.

http://www.justice.gov/opa/pr/2012/January/12-tax-012.html

Tags: criminal investigation, document,