Hampton, Virginia, Return Preparer Indicted for Tax Fraud

A recent tax release by the United States Department of Justice announced that Carl L. Burden, a tax preparer located in Hampton, Virginia, was indicted for aiding and assisting in the preparation of false tax returns, theft of government funds, and failing to file tax returns.

Per the press release:

According to the indictment, from 2013 through 2019, Carl L. Burden prepared tax returns for clients in Hampton and the surrounding counties.  Burden allegedly falsified those returns by fraudulently claiming dependents, residential energy credits, deductions, and child and dependent care expenses, in order to inflate the refunds sought from the Internal Revenue Service (IRS). Burden also allegedly directed a portion of a fraudulently obtained refund to be directly deposited to his bank account. The indictment also alleges that during this period, Burden did not file his own tax returns.

If convicted, Burden faces a statutory maximum sentence of ten years in prison for theft of public money, three years in prison for each count of aiding and assisting in the preparation of a false return, and one year in prison for each count of failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.

According to the Tax Division’s Criminal Tax Manual, aiding and assisting in the preparation of false tax returns is charged under 26 U.S.C. § 7206(2). The elements for this charge are that:

1. Defendant aided or assisted in, procured, counseled, or advised the preparation or presentation of a document in connection with a matter arising under the internal revenue laws;
2. The document was false as to a material matter;
3. The act of the defendant was willful

The definition of “theft of public money” according to the original statute found in the Library of Congress is below:

Whoever embezzles, steals, purloins, or knowingly converts to his use or the use of another, or without authority, sells, conveys or disposes of any record, voucher, money, or thing of value of the United States or of any department or agency thereof, or any property made or being made under contract for the United States or any department or agency thereof; or

Whoever receives, conceals, or retains the same with intent to convert it to his use or gain, knowing it to have been embezzled, stolen, purloined or converted, shall be fined not more than $10,000 or Imprisoned not more than ten years, or both; but if the value of such property does not exceed the sum of $100, he shall be fined not more than $1,000 or imprisoned not more than one year, or both.

Failing to make (file) tax returns is covered under 26 U.S.C. § 7203 and the elements for this charge can be found below and in the Criminal Tax Manual:   

1. The defendant was a person required to file a return;
2. The defendant failed to file at the time required by law; and
3. The failure to file was willful.

As previously mentioned, Mr. Burden is subject to a “statutory maximum sentence of ten years in prison for theft of public money, three years in prison for each count of aiding and assisting in the preparation of a false return, and one year in prison for each count of failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.”

Posted on 03/12/2020 by Benjamin Tu