A former CPA, Dick Reid Jenkins of Heber City, Utah, has been convicted of 18 counts of filing false tax returns and one count presenting a fictitious financial instrument of more than $300 millon. Jenkins filed returns claiming slightly more than $8.8 million in returns for himself and 16 other taxpayers.Jenkins faces a maximum of 25 years in prison and a $250,000 for presenting what was described as a fictitious obligation to the United States. He also is subject to a maximum of five years in prison and a fine of up to $250,000 or twice the gross gain or loss he caused on each count of presenting a false claim. He was permanently barred from preparing federal returns for others in April 2010.
Evidence showed he claimed a tax refund of $402,920 in a return for 2007 he filed for himself in September 2008. In October that year, he filed an amended return for 2004 that claimed a refund of $434,261. Both were based on a false IRS Form 1099-OID, Original Issue Discount. That form is often used by individuals protesting the U.S. tax system. Use of the 1099-OID was also at issue in the 16 returns that he filed for individuals that claim refunds of slightly more than $8.4 million.
