Tax Preparation

Proprietor of a tax advisory agency charged with tax fraud

The owner of Emeryville Tax Services, a tax filing company, has been hired to assist and assist with fraudulent tax filing, said Acting U.S. Attorney Stephanie M. Hinds and Internal Revenue Service, Criminal Investigation and IRS-Criminal Investigation Special with agent in charge Mark H. Pearson.

Traci Austin, 44, of Brentwood, Calif., Is alleged to have created materially false and fraudulent tax returns for her clients by recording incorrect and / or excessive Schedule A expenses, incorrect and / or excessive Schedule C income and expenses, and incorrect dependents . The investigation found that Austin allegedly helped prepare at least 42 fraudulent tax returns and an estimated tax loss of well over $ 697,000 to the federal government.

According to the announcement, the lawsuit also alleges that Austin has hosted a “tax school” since 2016 that charges at least $ 200 per student. According to the complaint, the aim of the tax school was to hire the participants as preparers for Emeryville Tax Services and to prepare tax returns for the company’s customers as well as for the participants’ own customers.

Austin allegedly instructed potential tax advisors to fraudulently manipulate tax returns in order to obtain the maximum tax refund, and therefore the maximum tax preparation fee, by listing fictitious ancillary businesses in Appendix C and fake business expenses in Appendix A. The complaint describes how Austin teaches students that she created a fictional dog grooming company for a client, created a fictitious income statement for the fake company, and instructed the client to print out some photos of dogs to get the idea underpin their fictional plot company.

If convicted, Austin faces a maximum sentence of three years in prison and a fine of $ 100,000.

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Copyright © 2021 by Bay City News, Inc. Republication, redistribution, or other reuse is prohibited without the express written consent of Bay City News, Inc.

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