Avenaut & Associates Tax and Accounting Service

Avenaut & Associates Tax and Accounting Service Tel: 914-909-4428
Fax: 914-909-4429

12/22/2015

Longer Prison Term Awaits Bronx Tax Preparer Sentenced a Second Time for Tax Fraud
NYS Tax Enforcement Commissioner tells court Joseph Barrios broke the law “in an aggressive, premeditated manner”
For Release: Immediate, Thursday, July 03, 2014

The New York State Department of Taxation and Finance today announced that a convicted tax preparer who "thumbed his nose at the court" was sentenced to a minimum of 1 1/3 to 4 years in prison.

The defendant is Joseph Barrios, Jr., 50, a Mahwah, NJ resident who operated JB Tax, Inc. at 371 E 138th St. in the Bronx. The business has also operated under the names Barrios Agency Inc., BA Services Inc., JB Tax Services Inc., and All Option Services Corporation.

Barrios appeared before Justice Martin Marcus in Bronx Supreme Court to face the consequences of two new felony charges related to filing fake tax returns.

Barrios had been charged in January of this year with filing false returns on behalf of his clients and he pled guilty to those charges. The Tax Department subsequently revoked his registration as a preparer.

However, while waiting to be sentenced to an expected six months at Riker's Island he continued to violate the law by filing returns without being registered. In addition, some of the subsequent returns were again fraudulent, leading to his second arrest and today's stiffer sentence.

"He thumbed his nose at the Court and the District Attorney's office," Risa Sugarman, who leads the New York State Tax Department's Criminal Investigations Division, said in a statement to Justice Marcus. "He continued to commit fraud and violated the Court's - and his clients' - trust." (Read Ms. Sugarman's prepared statement.)

On his second arrest in March, Barrios was charged with two separate counts of the same crime, Offering a False Instrument for Filing in the First Degree, a class E felony that carries a maximum sentence of 1 1/3 to 4 years of imprisonment on each count. If Barrios meets the terms of his plea agreement, he would serve only one sentence, not both consecutively.

Those terms state that he must pay fines and penalties to the State of $20,000; this, in addition to the same amount he paid when convicted the first time. He also agreed to refrain from completing or filing any tax returns until he successfully completes and is discharged from parole following his prison sentence. This includes Federal as well as State tax returns.

The Tax Department audited more than 5,000 returns filed by Barrios from 2009 to 2013, and stopped or recovered more than $6 million in fraudulent refunds claimed on those returns.

"An overwhelming number of tax preparers in New York are professionals and serve their clients well," Sugarman said. "But then there are people such as Joseph Barrios, who broke the law in an aggressive, premeditated manner.

12/22/2015

NYS Tax Commissioner Mattox and A.G. Schneiderman Announce Arrest of Unregistered Bronx Tax Preparer on Felony Tax Charges

Defendant charged with tax fraud, filing a false personal income tax return, and trying to steal tax refunds

For Release: Immediate, Monday, January 26, 2015

Attorney General Eric T. Schneiderman and New York State Department of Taxation and Finance Commissioner Thomas H. Mattox today announced the arrest of Raul Kelley, 48, on three felony charges stemming from his business as a tax preparer.

A complaint filed with Albany City Court charged Kelley with the following crimes: Criminal Tax Fraud in the Fourth Degree, a class E felony; Offering a False Instrument for Filing in the First Degree, a class E felony; and, Attempted Grand Larceny in the Third Degree, a class E felony.

According to the complaint, the investigation revealed that Kelley, of 1019 E. 222nd St., Bronx, NY, had been hired to prepare a personal income tax return for two taxpayers and file it with the State of New York, despite not being registered with the State as a tax preparer. The complaint accuses Kelley, who worked on returns from his home address, of grossly inflating the taxpayers' job expenses for 2012 from $1,500 to $97,120 against wages of $98,212. This resulted in the return showing a refund of $4,432, to which the taxpayers were not entitled. In contrast, the complaint further alleges that had job expenses of only $1,500 been claimed, the return should have reported that the taxpayers owed the State $1,434.

"New Yorkers should take every precaution to ensure their tax preparers are legitimate and registered with the State," said Attorney General Schneiderman. "We will do everything in our power to punish those who rip off New Yorkers, whether it's an illegal tax preparer or an individual filing false insurance claims. Tax preparers who engage in fraud will be held accountable."

"With the income tax season underway, this case stands as a prime example of why New York State recently became only the fourth state in the nation to regulate the tax preparer industry, focusing on ethical and educational standards," said Commissioner Mattox. "Seven million -- or 70% -- of New York taxpayers hire tax preparers to complete their returns, which is why we will continue to work with the Attorney General and all levels of law enforcement to protect consumers from fraud and unscrupulous practices."

Commissioner Mattox encouraged taxpayers to ensure that tax preparers are registered with New York State by using the Tax Department's searchable online database of 40,000 tax preparers. Certified public accountants, attorneys and enrolled agents have other professional requirements and are, therefore, not required to be registered.

The Honorable Rachel Kretser arraigned Kelley on the complaint today and set bail in the amount of $7,500 bond/$3,000 cash. The case was adjourned until tomorrow for conference.

The charges against Raul Kelley are merely accusations and he is presumed innocent until and unless proven guilty. If convicted, the defendant faces a maximum sentence of one and one-third to four years of incarceration.

The Attorney General thanks the New York State Department of Taxation and Finance for its valuable assistance in this case. The case is being investigated by New York State Department of Taxation and Finance's Fraud Analysis and Selection Team, as well as Supervising Investigator Danielle Wallin and Associate Attorney Michelle Demeri of the Criminal Investigations Division, and by OAG Investigators Michael Leahy and Mark Spencer. The Investigations Bureau is led by Chief Dominick Zarrella.

The case is being prosecuted by Assistant Attorney General Nancy Snyder of the Criminal Enforcement and Financial Crimes Bureau. The Bureau is led by Bureau Chief Gary Fishman and Deputy Chiefs Stephanie Swenton and Meryl Lutsky. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

12/22/2015

EASTCHESTER TAX PREPARER INDICTED FOR FAILING TO PAY CLIENT’S TAXES

Feb. 19, 2015 -- Westchester County District Attorney Janet DiFiore and New York State Department of Taxation and Finance Incoming Commissioner Kenneth Adams announced today that Louis Ciampanelli (DOB 02/17/55) of 1 Nelson Rd., Eastchester, New York, was arraigned on an indictment charging him with:
one count of Grand Larceny in the Third Degree, a class "D" Felony,
two counts of Criminal Tax Fraud in the Fourth Degree, class "E" Felonies.
"While this defendant allegedly held himself out to be a tax preparer, stealing clients money rightfully destined for the IRS and the New York State Tax Department, he also, over a number of years, failed to file and pay his own taxes. When an individual doesn't pay one's taxes it impacts all of us, as the burden becomes greater on those of us who do," said District Attorney Janet DiFiore.
"More than 70 percent of all New Yorkers use a paid professional to complete and file their income tax returns," said incoming Commissioner Adams. "We will continue to work with law enforcement of all levels to uncover unscrupulous preparers and hold them accountable for their crimes."
Between December 14, 2010 and Feb. 13, 2012, the defendant provided personal and business accounting and tax preparation services to John Nardini Construction, Inc.
According to the owner and his wife, rather then pay the United States Internal Revenue Service or the New York State Tax Department directly, the defendant had instructed them to provide him with checks, made payable to either Louis Ciampanelli or LMC Tax Consultants.
Ciampanelli told the victims that he would then, in turn, make the payments on their behalf to the taxing agencies.
The defendant never paid the taxing authorities for either their personal taxes or the businesses taxes. The funds were converted for his own use.
The amount of the larceny is approximately $47,000.
The defendant was arrested by investigators from the District Attorneys Office.
Bail was continued at $5,000 cash/$15,000 bond.
The case was adjourned to May 20, 2015.
The defendant faces a maximum sentence of seven years in state prison.
Assistant District Attorney Robert Mayes of the Economic Crimes Bureau is prosecuting the case.

12/22/2015

Press releases
Contact the press office
Freedom of Information Law (FOIL) request
Bronx Tax Preparer Arrested and Charged With Grand Larceny by NYS Tax Department
Also charged with multiple counts of Identity Theft and Tax Fraud
For Release: Immediate, Thursday, April 02, 2015

Contact: Geoffrey Gloak, 518-457-7377

The New York State Department of Taxation and Finance today announced the arrest of a Bronx income tax preparer. Cruz D. Acevedo, 49, allegedly prepared and filed false personal income tax returns showing fictitious expenses and stole clients' tax refunds.

Ms. Acevedo, of 2115 Washington Avenue, was charged with:

Offering a False Instrument for Filing (3 counts)
Grand Larceny in the Fourth Degree (2 counts)
Attempted Grand Larceny in the Third Degree
Criminal Possession of Stolen Property in the Fourth Degree (2 counts)
Criminal Tax Fraud (3 counts)
Identity Theft in the Second Degree (2 counts), and
Scheme to Defraud.
Ms. Acevedo prepared tax returns under the business name Nostra Tax Service.

"As the income tax deadline approaches, taxpayers should consider free tax preparation options available from the IRS, AARP and our Department, and if they do opt to hire a tax preparer, ensure that the individual is trustworthy and professional," said Acting Commissioner of Taxation and Finance Kenneth Adams. "We thank the New York City Police Department and Bronx District Attorney Robert Johnson for their assistance with this investigation and continued prosecution."

The April 1 arrest followed an in-depth investigation by the Tax Department's Criminal Investigations Division, including Principal Investigator F***y Almanzar, Attorney Robert Eisman and Supervisor Antonio Mercado. The prosecution will be handled by Assistant District Attorney Michelle Milanes from Bronx District Attorney Robert Johnson's office.

A criminal complaint is an accusation and the defendant is presumed innocent until proven guilty.

02/03/2015

Filing Fake Documents to Hide Income Is Again on the IRS “Dirty Dozen” List of Tax Scams for the 2015 Filing Season

Hiding taxable income by filing false Form 1099s or other fake documents is a scam that taxpayers should always avoid and guard against, the Internal Revenue Service said today. This scheme is one of those on the annual “Dirty Dozen” list of tax scams for the 2015 filing season.

“The mere suggestion of falsifying documents to reduce tax bills or inflate tax refunds is a huge red flag when using a paid tax return preparer.” said IRS Commissioner John Koskinen. “People should watch out for this type of scam especially when someone else prepares their returns.”

Compiled annually, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter any time but many of these schemes peak during filing season as people prepare their returns or hire people to help with their taxes.

Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them.

Falsely Claiming Zero Wages

Filing a phony information return, such as a Form 1099 or W-2, is an illegal way to lower the amount of taxes an individual owes. These scofflaws use self-prepared, “corrected” or otherwise bogus forms that improperly report taxable income as zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a third-party payer to the IRS.

Taxpayers should resist any temptation to participate in any variations of this scheme. The IRS is well-aware of this scam, the courts have consistently rejected attempts to use this tax dodge and perpetrators have received significant penalties, imprisonment or both. Just filing this type of return may result in a $5,000 penalty.

Some people also attempt fraud using false Form 1099 refund claims. In some cases, individuals have made refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS.

In this scam, the perpetrator files a fake information return to justify a false refund claim on a corresponding tax return. Again, the IRS is well-aware of this scam, the courts have consistently rejected attempts to use this tax dodge and perpetrators have received significant penalties, imprisonment or both.

01/02/2015

Tax Season Opens As Planned Following Extenders Legislation

Dec. 29, 2014

WASHINGTON -- Following the passage of the extenders legislation, the Internal Revenue Service announced today it anticipates opening the 2015 filing season as scheduled in January.

The IRS will begin accepting tax returns electronically on Jan. 20. Paper tax returns will begin processing at the same time.

The decision follows Congress renewing a number of "extender" provisions of the tax law that expired at the end of 2013. These provisions were renewed by Congress through the end of 2014. The final legislation was signed into law Dec 19, 2014.

"We have reviewed the late tax law changes and determined there was nothing preventing us from continuing our updating and testing of our systems," said IRS Commissioner John Koskinen. "Our employees will continue an aggressive schedule of testing and preparation of our systems during the next month to complete the final stages needed for the 2015 tax season."

The IRS reminds taxpayers that filing electronically is the most accurate way to file a tax return and the fastest way to get a refund. There is no advantage to people filing tax returns on paper in early January instead of waiting for e-file to begin.

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