California-Based Tax Preparer Admits to Fraudulent Tax Return Practices

Guilty Plea from Maryland Tax Preparer

A tax return preparer in Maryland has entered a guilty plea for his involvement in the preparation of false tax returns.

The preparer, Adis Smith, admitted to his actions, which aimed to deceive the Internal Revenue Service (IRS) by submitting fraudulent returns.

False Tax Returns Over Several Years

According to court documents and statements made in court, Adis Smith, formerly of Baltimore and currently residing in Chula Vista, California, was involved in the preparation and filing of false income tax returns for his clients.

These activities spanned from at least 2017 through 2022. Smith’s deceptive tactics primarily involved manipulating the returns to either reduce the amount of taxes owed or generate refunds that were not legitimately due.

Fictitious Losses and Deductions

Smith’s scheme typically included reporting fictitious or inflated business losses and itemized deductions on the tax returns.

His intention was to underreport his clients’ taxable income and increase the likelihood of refunds.

To evade detection by the IRS, he categorized each client’s tax return as having been “self-prepared” by the client, concealing his direct involvement in the process.

Substantial Tax Loss to the IRS

The magnitude of Smith’s fraudulent activities is significant. He prepared over 1,000 false tax returns, resulting in a substantial tax loss to the IRS, estimated at approximately $4,729,311.

Upcoming Sentencing and Potential Penalties

Adis Smith is set to be sentenced on February 2. He faces severe consequences, including a maximum penalty of three years in prison, supervised release, restitution to the IRS, and monetary penalties.

The exact sentence will be determined by a federal district court judge, considering the U.S. Sentencing Guidelines and other relevant statutory factors.

Announcement by Justice Department

The announcement of Adis Smith’s guilty plea and the ongoing investigation comes from Acting Deputy Assistant Attorney General Stuart M.

Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland.

IRS-Criminal Investigation Involvement

The IRS-Criminal Investigation division is actively investigating the case, working to uncover the extent of the fraudulent activities and ensure appropriate legal action.

Prosecution Team

The case is being prosecuted by Trial Attorneys Matthew Cofer and Sarah Ranney of the Tax Division, along with Assistant U.S. Attorney Sean Delaney for the District of Maryland.

They are responsible for pursuing the legal actions against Adis Smith in this tax fraud case.

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