Elijah Washington Jr., Tax Evasion, New Jersey 2013
NEWARK, N.J. - Elijah Washington Jr., a tax preparer from Jersey City, has been convicted of tax evasion, a felony punishable by up to five years in prison and a $250,000 fine.
Washington Jr., 45, of Jersey City, N.J., owned and operated a tax preparation business, Elijah's Professional Tax Service, in Jersey City, where he prepared tax returns for tax years 2005 through 2008. He admitted that he fabricated various items to obtain larger refunds for clients, including tuition and fees deductions, child tax credits, charitable contributions, and job expenses.
Washington Jr. also failed to report his own income on the money he earned from the tax preparation business.
Tax evasion is a felony, punishable by prison time and heavy fines and penalties, said U.S. Attorney Paul J. Fishman. It's essential for taxpayers to take time to carefully prepare their returns and make sure they file them - or seek a filing extension - before the deadline.
The prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system, said Acting SAC Shantelle P. Kitchen, IRS-Criminal Investigations. Year-round efforts of IRS-Criminal Investigation are directed at that portion of Americans who willfully and intentionally violate their legal duty to voluntarily file lawful and accurate tax returns.
Taxpayers who are hiring someone else to prepare their returns for them should ensure they are working with reputable tax return preparers, said U.S. Attorney Fishman. Be careful when choosing someone else to prepare your taxes. Even if someone else prepares your return, you are ultimately responsible for all the information on it. Make sure you review your return, and never sign a blank form.
Other recent tax cases prosecuted by the U.S. Attorney's office in New Jersey include:
Nicholas Papanier Sr., 57, of Sewell, N.J., pleaded guilty on March 22, 2013, to one count of tax evasion. Between 2006 and 2009, Papanier owned Nellie's Provisions, a meat distribution company that provided all of the meat for Primo Hoagies franchises and other independent restaurants. In 2006, 2007, and 2008, Papanier persuaded Primo Hoagies franchise owners to buy Thumann's deli products from Nellie's Provisions, often paying for them in cash. He took a significant amount of the cash paid to Nellie's Provisions and deposited it into his personal bank accounts. Papanier admitted that he did not report the diverted cash to the IRS and only reported Form W-2 wages, interest, and dividend income, and property tax information. By omitting all of the diverted cash, he failed to disclose and report a significant portion of this income on his tax returns, causing those tax returns to substantially understate the amount of income he received.
Rakesh Chitkara, 60, of Marlboro, N.J., pleaded guilty on March 21, 2013, to making and subscribing to a 2007 federal income tax return to the IRS that he did not believe to be true. Chitkara admitted that he had a financial interest in at least two financial accounts at UBS AG in Zurich, Switzerland, and that he knowingly failed to disclose these accounts, and income from these accounts, on his personal tax returns for five years.
Joseph Gallagher, 69, of Rutherford, N.J., a tax preparer and disbarred New Jersey lawyer, was sentenced on March 20, 2013, to 36 months in prison for submitting false tax returns or failing to file returns. He also failed to report his own income on the money he earned from the tax preparation business.
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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