kcjenkins Posted May 27, 2014 Report Share Posted May 27, 2014 A former Chicago tax preparer was sentenced to nearly four years in prison for filing nearly 3,200 false federal income tax returns that claimed refunds totaling more than $3.37 million for clients. Verlean Hollins was sentenced Thursday to 46 months in prison and fined nearly $800,000 after pleading guilty in January to two counts of aiding and assisting in the preparation of false federal income tax returns. Hollins, 43, of South Holland, Ill., was ordered to begin serving her sentence on Sept. 23 by U.S. District Judge Samuel Der-Yeghiayan. The $798,250 fine, which Hollins agreed to but does not currently have the ability to pay, represents twice the product of the 3,193 false returns, multiplied by Hollins’ average client fee of $125. This was “not a minor offense, there was significant loss to the government over a period of years,” Judge Der-Yeghiayan said in imposing the sentence in U.S. District Court. “Defendant stole from the people,” he said, adding her crime “became a business lifestyle.” Hollins, who owned Taxes, Etc., Inc., admitted that for calendar years 2009 through 2011, she filed a total of 3,193 individual income tax returns for clients, each of which claimed false education tax credits. As a result, she falsely claimed refunds totaling more than $3.372 million for her clients, the majority of whom paid her approximately $125 to prepare their returns. The vast majority of Hollins’ clients never indicated that they or a dependent were eligible for a college tuition credit, and among the small number of her clients who were eligible for the tax credit, none provided any documents to support eligibility, prosecutors pointed out. The government was represented by Assistant U.S. Attorney Kaarina Salovaara. The sentence was announced by Zachary T. Fardon, U.S. Attorney for the Northern District of Illinois, and James C. Lee, special agent-in-charge of the Internal Revenue Service Criminal Investigation Division in Chicago. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted May 27, 2014 Author Report Share Posted May 27, 2014 The penalty for obvious fraud by tax preparers is way too lenient, IMHO. These sentences are nothing more than a slap on the wrist. If you are convicted of money laundering under the RICO act you get 20 YEARS prison time and a $250,000 fine. A drug dealer who sells a couple ounces or cocaine gets longer than this. Until the government makes these penalties hurt and hurt bad these criminals will continue to steal taxpayer monies. Also, making more laws NEVER curbs criminals, just look at the strict "gun control" laws...DC, Detroit and Chicago have the toughest gun control laws in the nation so you would think they would be the SAFEST cities in the US, however they are just the opposite. They lead in the number of murders and other crimes where guns are used. Criminals ignore the laws, ESPECIALLY WHEN THEY LEAD TO SENTENCES LIKE THIS. 46 months for committing this deliberate fraud 3,193 times? And what about those 3,193 people who filed those bogus returns? Any punishment for them? Quote Link to comment Share on other sites More sharing options...
Pacun Posted May 28, 2014 Report Share Posted May 28, 2014 I guess you are right, there should be more severed penalties for the preparer. I guess it makes sense why the IRS doesn't go after tax payers when they get the tax preparer. Think about it, if the tax preparer got 46 months for 3,193 offenses, one of those tax payers will get prison time of LESS THAN half of a day, correct? If you don't believe me, do the math 46 month divided by 3,193. Can someone post the exact answer? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted May 28, 2014 Author Report Share Posted May 28, 2014 About 10.4 hours. Quote Link to comment Share on other sites More sharing options...
Pacun Posted May 28, 2014 Report Share Posted May 28, 2014 You have the case of the preparer and this one. Words are stronger that actions, correct? Man Convicted of Threatening to Kill IRS Agent and His Family Providence, R.I. (May 27, 2014) By Michael Cohn, Editor-in-Chief, AccountingToday.com A Rhode Island man has been convicted of threatening to assault and murder an Internal Revenue Service revenue agent and his family. Andrew A. Calcione, 49, of Cranston, R.I., was found guilty Friday of the charges by U.S. District Court Chief Judge William E. Smith, who presided over a trial on May 21. Calcione faces up to 20 years in prison when he is sentenced in September. Quote Link to comment Share on other sites More sharing options...
taxxcpa Posted May 28, 2014 Report Share Posted May 28, 2014 You have the case of the preparer and this one. Words are stronger that actions, correct? Man Convicted of Threatening to Kill IRS Agent and His Family Providence, R.I. (May 27, 2014) By Michael Cohn, Editor-in-Chief, AccountingToday.com A Rhode Island man has been convicted of threatening to assault and murder an Internal Revenue Service revenue agent and his family. Is that a crime or was he performing a public service? 2 Quote Link to comment Share on other sites More sharing options...
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