In recent years, the government has been actively combating return preparer fraud. CG Attorneys have analyzed various tax preparer cases, including a recent complaint filed by the United States aimed at barring nine Florida tax preparers and their associated businesses from aiding in the preparation of federal income tax returns. Now, new developments have emerged regarding a Florida tax preparer who is facing imprisonment.
On February 26, the Department of Justice (DOJ) announced the 2-year prison sentence of Phedson Dore for his alleged involvement in a conspiracy to defraud the United States by submitting false tax returns. Operating Empire Tax Services from 2017 to 2020, Dore and his accomplice purportedly submitted hundreds of false returns each year.
Their alleged fraudulent scheme involved inflating federal income tax withholdings and fabricating itemized deductions to obtain unwarranted refunds for clients. The DOJ alleged that Dore, to conceal his actions, frequently omitted his name as the preparer on the returns and omitted Empire’s Electronic Filing Number (EFIN), instead using his employees’ names and the EFINS of other tax preparation businesses.
The IRS estimates a loss of approximately $970,000 due to Dore’s activities, which Dore has been ordered to pay back in restitution. In addition to the prison term and restitution, U.S. District Judge Roy B. Dalton Jr. ordered Dore to serve two years of supervised release.
This case reflects a broader trend of DOJ prosecutions and complaints targeting tax fraud. In response to such allegations, businesses should seek the support and guidance of a reputable defense law firm. The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with white-collar investigations. If you need assistance with such a matter, please contact us today.