Tax preparer Brian Day of New Jersey pleaded guilty to filing false tax returns and bank fraud in a scheme to misappropriate clients’ money and defraud the IRS.
Day informed his clients that they owed more money to the IRS than what was actually required. He instructed them to write checks made out to the IRS and then altered the payee information on the checks to make them payable to one of his tax preparation companies. He made these false claims to at least five individuals, resulting in a loss of nearly $125,000.
When two clients questioned him about the checks he presented them with false documents he claimed were from the IRS.
Day is also accused of submitting at least 21 false tax returns to the IRS from tax years 2009 to 2015, resulting in a loss of nearly $500,000 to the IRS.
From 2013 to 2015 he also inflated clients’ tax forms by more than $383,000 to get them larger tax returns.
Day was sentenced to 32 months in prison and ordered to pay nearly $500,000 in restitution.