Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the filing of a civil complaint against SAMUEL GENTLE, who was previously convicted of preparing fraudulent federal tax returns through a tax preparation business, to prohibit him from preparing tax returns for others or engaging in activities that substantially interfere with the administration of federal tax laws.
U.S. Attorney Geoffrey S. Berman said: “A tax return preparer who has repeatedly cheated the tax system by filing fraudulent tax returns should not be permitted to continue business as usual. This Office is committed to ensuring the integrity of the federal tax system that depends on truthful, accurate reporting.”
As alleged in the Government’s complaint filed in federal district court today:
From 2008 to 2014, GENTLE systematically and intentionally filed fraudulent federal tax returns on behalf of customers through his tax return preparation business, GenGen, Inc. In preparing these tax returns, GENTLE repeatedly invented charitable donations, claimed phony business losses for nonexistent businesses, and fabricated unreimbursed employee business expenses. GENTLE, who filed an average of 3,200 federal tax returns each year and whose profits depended on word-of-mouth referrals, prepared and fraudulently filed false tax returns in order to reduce his customers’ tax liabilities or obtain tax refunds to which his clients were not entitled. GENTLE’s conduct caused the United States to lose millions of dollars in understated taxes and fraudulent refunds. In 2016, a jury found GENTLE guilty of 38 counts of aiding and assisting in the preparation of false and fraudulent federal tax returns. The Government is now seeking an injunction against GENTLE that would, among other things, permanently bar him from preparing or filing federal tax returns on behalf of others.
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Mr. Berman thanked the Internal Revenue Service for its assistance with this case.
The case is being handled by the Tax and Bankruptcy Unit in the Office’s Civil Division. Assistant U.S. Attorney Jennifer C. Simon is in charge of the case.