Lots of taxpayers would love to drive a luxury car and own a fancy house in a nice neighborhood. Apart from winning the lottery, most people expect to work hard to acquire the “good life.” According to an article posted on ABC24.com, a Memphis, Tennessee businessman didn’t see it that way. He preferred to scam it out of his clients by committing tax refund fraud.
The man ran a business called “Money in Your Hand Tax Service,” which prepared tax refunds for clients. According to the lawsuit, he prepared the returns, but took it a step further by committing fraud. In fact, in 2008, he submitted almost 500 fraudulent tax returns. His approach was simple: he used his business to add phony deductions to tax returns – including first-time home buyer credits – and then ensured that some of the funds were directly deposited into bank accounts he controlled. His grand total for tax refund fraud? More than $3.4 million in fake deductions. The article does not indicate, however, that any of his clients whose tax refunds he’d submitted were party to the fraud he was perpetrating.
A federal judge sentenced him to five years and four months in prison and ordered him to pay the $3.4 million back to the IRS. Oh yeah…they also seized his luxury car and his home.