Tax season is halfway through, IRS special agents say don’t let your guard down

Tax season is halfway through, IRS special agents say don’t let your guard down News Staff Wed, 03/20/2024 - 12:13 Image Body

IRS Criminal Investigation’s Houston Field Office warns taxpayers about tax preparers who will make big promises that can land you behind bars.

In 2023, the efforts of the Houston Field Office led to 96 individuals being sentenced, collectively serving nearly 400 years in prison, and ordered to pay over $22 million in restitution.

“Tax season is a prime time for criminals to prey on others, but with the right knowledge and precautions, individuals can minimize their risk,” said Special Agent-in-Charge Ramsey E. Covington, of the Houston Field Office. “By carefully choosing tax preparers, and protecting their personal information, taxpayers can safeguard their finances and avoid becoming victims of fraudulent schemes.”

To prevent yourself from becoming an unwitting part of a tax crime, CI special agents recommend you protect yourself when you choose a tax preparer. Additionally, protecting your identity helps further prevent you from becoming a victim this tax season.

A few simple tips can keep your refund safe:

• Avoid return preparers who claim they can obtain larger refunds than other preparers or whose fee is a percentage of your tax refund.

• Use a reputable tax professional who signs and enters a preparer tax identification number (PTIN) on your tax return and provides you with a copy of the return for your records.

• Never sign a blank tax form and ensure your refund goes to your account, not your tax preparer’s.

• Protect your personal and financial information. Don’t click links or open attachments in unsolicited emails or text messages about your tax return or those claiming to be from the IRS. These messages are fraudulent and could contain malware that could compromise your personal information.

• Get An Identity Protection PIN | Internal Revenue Service (irs. gov)

• Report fraud to law enforcement. Submit Form 3949-A, Information Referral, if you suspect an individual or a business is committing fraud.

“These warnings and tips are nested in real life examples,” said Covington. “Whether it is an unscrupulous tax preparer, an identity thief or someone choosing not to pay all of their taxes, these are serious federal offenses. Make the choice to file correctly and protect yourself and your refund.”

Examples of convicted and sentenced criminals for tax and identity theft range from tax preparers and identity thieves living lavish lifestyles, to those that choose to not pay what they owe in taxes. Cheryl Christin Kissentaner – 12 years in prison, preparing false tax returns Kissentaner was found guilty by a jury and sentenced to 144 months in prison for seven counts of aiding and assisting in preparing false tax returns. She used some of the monies accrued from the scheme to purchase a Bentley and Maserati as well as for cosmetic surgery. At trial, evidence showed that 98 percent of her clients obtained a refund even though several owed as much as $25,000 and did not pay any income taxes throughout the year.

Ryan Shern – more than 5 years in prison, wire fraud and aggravated identity theft Shern was sentenced to more than five years in prison for wire fraud conspiracy and aggravated identity theft. He participated in a conspiracy to use stolen identity theft information to seek fraudulent tax refunds from the IRS in the names of unsuspecting taxpayers. From 2016 through 2019, to facilitate access to the payments, Shern allowed co-conspirators to direct such refunds to his and his wife’s personal bank accounts and to prepaid debit cards he purchased and controlled. Shern used a portion of the tax refunds to purchase money orders and luxury goods for himself.

Peter Joseph Tignini – over 3 years in prison, tax evasion Tignini was sentenced to serve 41 months in prison and to pay a $150,000 fine as well as more than $1.1 million in restitution to the United States. According to court records, from 2013 to 2018, Tignini worked in the United Arab Emirates and Qatar, earning over $4,750,000 in income. However, for tax years 2013 through 2017, Tignini filed false returns that claimed his income was only approximately $100,000 each year. Tignini did not file a return for 2018. Following an interview with federal law enforcement, Tignini altered his employment contract and payroll documents to make it appear his former employer, not Tignini himself, was responsible for failing to report the income and pay the tax.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code. The agency’s Houston Field Office stretches across Texas with nine offices between Houston and El Paso. Report tax fraud by visiting https:// www.irs.gov/criminalinvestigation.