NEWARK – A Keasbey tax preparer was indicted on May 3 for allegedly using false information to increase his clients’ tax refunds and secretly diverting a portion of those funds into accounts that he controlled.
David Patterson, 37, is charged with 16 counts of aiding and abetting in the filing of false tax returns, according to a statement provided by U.S. Attorney Craig Carpenito.
According to the indictment, Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. Patterson allegedly prepared multiple fraudulent tax returns on behalf of his clients by falsifying their income, charitable contributions, employee business expenses, and education costs, all so his clients would receive higher refunds than those to which they were actually entitled, according to the statement. Patterson then allegedly diverted a portion of the tax refunds to bank accounts he controlled without his clients’ knowledge or consent, officials said.
According to the indictment, Patterson allegedly prepared 53 phony tax returns on behalf of 19 clients for tax years 2010-15, which resulted in a tax loss to the United States of $290,321.
The false filing charges each carry a maximum potential penalty of three years in prison and a $250,000 fine.