NEWARK, N.J. – A Kearney tax preparer was sentenced today to 29 months in prison for filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.
Police say David Patterson, 38, previously pleaded before U.S. District Judge Esther Salas to one count of aiding and assisting in the preparation of a false tax return and one count of willfully failing to file his own tax return. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Patterson owned and operated D&D Tax Service LLC, a tax preparation business located in Keasbey.
He admitted to preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he knowingly falsified the clients’ medical and dental expenses, gifts to charity, and unreimbursed employee expenses.
Patterson admitted that at times he split portions of his clients’ tax refunds into bank accounts he maintained or controlled.
He also admitted that he failed to file an individual income tax return for himself, and pay federal income taxes, for calendar year 2013.
In addition to the prison term, Judge Salas sentenced Patterson to one year of supervised release and ordered him to pay restitution of $290,321 to the United States.
He is also not permitted to run a tax preparation business until the end of his supervised release.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s sentencing.