THE REVERE ADVOCATE – FRIDAY, FEBRUARY 5, 2021 Page 13 As tax filing season approaches, IRS Criminal Investigation reminds taxpayers to file accurate returns T he Internal Revenue Service’s Criminal Investigation Division (IRS-CI) recently reminded taxpayers to fi le accurate tax returns and choose a tax preparer wisely. The nation’s tax season starts on Friday, February 12 when the agency begins accepting and processing 2020 tax year returns. U.S. persons are subject to tax on worldwide income from all sources. Most taxpayers meet this obligation by reporting all taxable income and paying taxes according to the law. However, those who willfully hide income should know that the IRS works across its divisions to ensure the highest possible tax compliance. Taxpayers found to be committing fraud might be subject to penalties, including criminal prosecution and payment of taxes owed plus interest, fi nes and jail time. “As taxpayers prepare to fi le returns, we urge everyone to fi le an accurate return and if you’re working with a preparer, do your due diligence,” said Acting Special Agent in Charge Ramsey Covington. “Those seeking to cheat the system could very well fi nd themselves a target of one of our investigations.” Tax return preparers are vital to the U.S. tax system. As of tax year 2018, 55 percent of taxpayers used a paid preparer. Although most preparers provide honest and professional services, there are a few dishonest preparers who set up shop during fi ling season to steal money and personal and fi - nancial information from clients. Taxpayers can avoid falling victim to unscrupulous preparers by following important steps. Tips when choosing a tax preparer • Look for a preparer who is available year-round in case questions arise after the fi ling season. • Ask if the preparer has an IRS Preparer Tax Identifi cation Number (PTIN), which is required for paid preparers. • Inquire about the preparer’s credentials and check their qualifi cations. • Ask about service fees. Avoid preparers who base fees on a percentage of their client’s refund or claim to off er a bigger refund than their competition. • Never sign a blank or incomplete return – and review it before signing. Refunds should go directly to the taxpayer, not the preparer. For more tips on choosing a tax professional or to fi le a complaint against one, visit IRS.gov. Taxpayers who suspect tax violations by a person or business may report it to the IRS using Form 3949A, Information Referral. The IRS-CI Boston Field Offi ce is committed to protecting taxpayers from others cheating the U.S. tax system. Here are some examples of some of the most egregious criminals who have been recently investigated and brought to justice: • On January 8, Billie Schofi eld of Rhode Island was sentenced to three years in prison for tax evasion. He failed to pay taxes owed and, beginning in 2009, stopped fi ling income tax returns. Between 2008 and 2018, Schofield obstructed IRS eff orts to assess and collect his taxes by fi ling fraudulent forms, advancing frivolous tax arguments, creating and using a nominee entity and bank account, negotiating income checks to cash and creating and submitting fraudulent checks to the IRS in an attempt to extinguish his tax liabilities. Including penalties and interest, he caused a tax loss of more than $350,000 to the United States. • On January 12, Louis DeMaio was sentenced to 30 months of imprisonment, followed by one year of supervised release, for tax evasion and obstruction offenses. He was employed as an accountant in East Haven, Connecticut, and from approximately 2010 to 2018, he also operated Almatt LLC, a temporary employment agency that provided day laborers to construction companies. Almatt and DeMaio failed to withhold employees’ taxes and subsequently failed to pay over those withholdings to the IRS. He also underreported his income by more than $2.5 million. The tax loss because of DeMaio’s criminal conduct is $1,132,398. • On February 11, 2020, Stephen Petrucci of Walpole was sentenced to one year and a day in prison, one year of supervised release, a fi ne of $10,000 and restitution to the IRS in the amount of $633,327 for failing to report income from his landscaping business to the Internal Revenue Service. To conceal his scheme, Petrucci used bank accounts at three diff erent banks or directly cashed customer checks without fi rst depositing them. He also maintained two sets of books: one to track business receipts deposited into his corporate account and one to track gross business receipts. He further withheld information concerning his gross business receipts from his tax preparers. • On January 6, 2020, Theresa Foreman was sentenced to 12 months and one day of imprisonment, followed by three years of supervised release, for a wideranging tax evasion scheme. She operated Equinox Home Care, LLC, a home healthcare staffi ng agency based in Stratford, Connecticut. Beginning as early as 2012, Foreman took money out of the company by depositing or cashing, and causing to be deposited or cashed, checks written to individuals who did not actually work for Equinox Home Care. Between May 2012 and December 2013, approximately $413,000 in payroll checks to these “ghost employees” were deposited into accounts controlled by Foreman’s brother. During the same period, approximately $465,000 was withdrawn from the accounts in cash, cash back from deposits, or checks payable to Foreman. Foreman also had employees cash company checks and return the funds to her, and she cashed or caused to be cashed mileage reimbursement checks made out to other individuals and used the funds for her own benefi t.
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