Clyde Gibson Jr., Tax Fraud, Connecticut 2024

A former Hartford tax preparer pleaded guilty to tax fraud in a Connecticut federal court, according to a report from the Grimy Times.

Clyde Gibson Jr., 43, of Hartford, waived his right to be indicted and pleaded guilty on April 25, 2024, before U.S. District Judge Sarah F. Russell in New Haven to a tax fraud offense, as reported by the internal investigation.

Gibson, who operated as a tax return preparer under the name Build Understand Destroys LLC, charged clients a fee for the preparation of tax returns and prepared thousands of federal tax returns, many of which claimed false deductions.

According to court documents, Gibson included false Schedules C and D in the returns, reporting that his clients had operated sole proprietorship businesses and had incurred certain expenses and losses when, in fact, they had not operated such businesses and had not incurred the claimed expenses.

During the investigation, Gibson met with an undercover federal agent posing as a customer and voluntarily opted to edit a return to reflect false and fraudulent information on the Schedules C and D.

The investigation found that Gibson prepared at least 135 tax returns containing fraudulent information, causing a loss to the IRS of at least $125,197, during the 2016 through 2022 tax years. Gibson has agreed to pay restitution of $125,197.

Gibson pleaded guilty to one count of aiding and assisting in the preparation of false and fraudulent income tax returns, an offense that carries a maximum term of imprisonment of three years. He is released on a $25,000 bond pending sentencing, which is not scheduled.

Source: https://www.justice.gov/usao-ct/pr/hartford-tax-preparer-pleads-guilty-federal-tax-charge