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N.J. Preparer Draws 32-Month Sentence

prison barsA 56-old tax preparer based in Port Murray, N.J., will serve a 32-month prison sentence and pay almost $500,000 in restitution to the Internal Revenue Service and  his victims. He used phony deductions and expenses to inflate refunds, but also stole money from clients.

Brian Allen Day, a self-employed tax preparer who worked for various tax businesses  drew the sentence after being convicted for allegedly using $383,773 in phony deductions and expenses.

He was indicted last year on four counts of aiding and assisting in the filing of false individual income tax returns for clients and four counts of defrauding banks by misappropriating clients’ funds based on misrepresentations about their purported tax payments owed to the IRS and by altering checks they paid to him for the purported tax liabilities and depositing the checks in his business bank accounts. 

His actions occurred during tax years 2013 to 2015. Besides fabricating and inflating expenses and deductions, Day was found during that period to having clients make tax payments owed to the IRS paid to him and then altering the checks to be payable to his businesses. The latter action also represented fraud perpetuated on the financial institutions in which the checks were deposited. He informed clients with phony documents saying the IRS had received the accurate payments. 

 

The IRS said Day stole $61,000 from clients.

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