Cedric Keith Oliphant, Tax Return Falsification, Texas 2008

Local Tax Preparer Caught Falsifying Tax Returns, Faces Prison Time

A Houston man has pleaded guilty to falsifying client tax returns, resulting in approximately $325,000 in losses to the IRS.

Cedric Keith Oliphant, 50, pleaded guilty to falsifying client tax returns in a Houston federal court on [No Date Specified]. Oliphant, who owned a tax service establishment in Houston, prepared and caused to be filed with the IRS dozens of false federal income tax returns for clients for tax years 2006 through 2008.

According to court documents, Oliphant included materially false deductions for gifts to charity and unreimbursed business expenses on the tax returns of his clients. This resulted in excessive federal income tax refunds and caused a direct pecuniary harm of several thousand dollars to the IRS.

Specifically, during his plea hearing, Oliphant admitted that he knowingly and willfully included materially false deductions for gifts to charity and unreimbursed business expenses on a client's 2007 tax return. This tax return alone caused a loss to the U.S. Treasury in the approximate amount of $11,261.

The plea agreement requires Oliphant to make full restitution to the IRS for the fraudulent refunds. Oliphant faces up to three years in prison and a $250,000 fine. Oliphant has been permitted to remain on bond until his sentencing date of November 22, 2013.

The investigation leading to these charges was conducted by IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jimmy Sledge Jr.

Oliphant's conviction serves as a reminder of the importance of accuracy and honesty in tax return preparation. 'Tax return preparers have a duty to their clients to prepare accurate tax returns that comply with the tax laws,' said Bernard Butler, acting special agent in charge of IRS-CI. 'IRS-CI endeavors to protect revenue by identifying, investigating and recommending prosecution of abusive return preparers.'

Source: https://www.justice.gov/usao-sdtx/pr/texas-man-convicted-falsifying-tax-returns