ITS, which had been the country's fourth-largest tax franchise, was ordered to close in late 2013 because of widespread tax filing fraud. Tsehaye operated his ITS locations via two entities, A&S Tax Service and ERI Enterprises, in Illinois, Kansas and Missouri from 2005 to 2011
Court records show that in 2010 and 2011, Tsehaye provided low-ball numbers for the two companies' gross receipts to his tax preparer, who prepared returns that were then filed with the IRS. The revenue was understated by $547,895 in 2010 and $1.03 million in 2011, while enabled Tsehaye to evade paying $581,264 in taxes.
Besides receiving the prison term, Tsehaye was ordered to serve three years of supervised release and to pay $298,178 in restitution to the Internal Revenue Service.Last modified on Monday, 13 February 2017