E-file evasion; a.k.a. a CTR scam; fancy cars and a dead mom; and other highlights of recent tax cases.
Minneapolis: Tax preparer Sue Yang, 48, of Circle Pines, Minnesota, has pleaded guilty to federal tax violations.
Yang, who operated a tax preparation business, participated in IRS e-file and was assigned an EFIN. In 2010, the IRS conducted a periodic suitability review of Yang and found that he had failed to file a 2009 personal income tax return and that he owed substantial federal income taxes from tax years 2005 through 2008. The IRS warned Yang repeatedly about potential sanctions, including suspension of his EFIN or expulsion from the e-file program.
In August 2012, Yang was suspended from the e-file program. He then operated surreptitiously as an e-filing preparer, enlisting others to obtain EFINs that he used to e-file more than 26,000 returns for clients.
From 2018 through 2021, Yang received some $765,000 from working as a tax preparer but reported no income related to his prep business. The combined federal tax loss was some $214,297.
He pleaded guilty to one count of filing a false federal income tax return and one count of corruptly impeding and obstructing administration of internal revenue laws.
Houston: Tax preparer Fabrice Mahinga has admitted to willfully preparing a false joint 2017 individual income tax return.
He admitted that from 2016 to 2018 he operated Kennedy Tax Service and that he often claimed fake Schedule C items, education and fuel tax credits…
