>From the East Coast comes two tales of Bozo tax preparers. They’re joined by one from the heartland. Together, it’s a trifecta of what not to do.
First, Henderson Joseph of Clarksburg, Maryland used to own Triad Business Services. Mr. Joseph followed the Western Tax Service methods of getting refunds for clients: lying. It works great until you get caught, and with $500,000 of fraudulent tax returns Mr. Joseph did get caught. He pleaded guilty to conspiracy, and he’s looking at about three years at ClubFed.
Meanwhile, Diana Aliffi of Suffolk County, Long Island, New York took Mr. Joseph’s methods one step further. She attempted to defraud New York of $19 million in phony refunds. The New York State Department of Taxation and Finance caught her, and she pleaded guilty in state court to a 76-count indictment with tax fraud front and center. Perhaps it was the fact that she told her clients to have the refunds come to her office instead of to the taxpayers (that in itself is illegal) that got her caught. In any case, Ms. Aliffi is looking at one to three years at a New York penitentiary and must make restitution of $57,000.
Finally, Gene Franklin was convicted in March 2008 on two counts of preparing false tax returns. His business, Franklin & Company, aligned itself with Renaissance, The Tax People. Renaissance was a multi-level marketing firm (no problem yet) that sold tax kits (still doing OK) that advocated tax fraud (that’s a problem). Mr. Franklin will spend 30 months at ClubFed.
Remember, if it sound too good to be true it probably is.
Tags: BozoTaxPreparer