Greensboro Tax Man Flythe Gets 18 Months for Fraud

GREENSBORO, NC – Marvin Flythe, a resident of Guilford County, North Carolina, is headed to federal prison after admitting to running a brazen tax fraud scheme. Flythe, who operated the tax preparation business “TAXHOVA” in Greensboro, was sentenced today to 18 months behind bars for aiding and assisting in the preparation of false tax returns.

According to the Department of Justice, Flythe wasn’t just sloppy with numbers; he actively manufactured losses and expenses. Between January 2012 and January 2015, Flythe systematically filed bogus returns for his clients, claiming false business losses and inflated unreimbursed employee expenses. The scheme netted at least 36 fraudulent refunds totaling a staggering $130,949.

But Flythe didn’t stop at victimizing his clients’ taxes. He also allegedly dipped into his own pockets, underreporting his income for the tax years 2011, 2012, and 2013, and outright failing to file a return for 2014. The scheme was brazenly advertised via a YouTube channel promoting TAXHOVA, a detail that highlights the level of Flythe’s calculated risk.

Flythe pleaded guilty in August to four counts of preparing false individual income tax returns. The sentence handed down today isn’t just about jail time. He’s been ordered to serve one year of supervised release after his incarceration, and, crucially, to pay restitution of $105,128.04 to the Internal Revenue Service (IRS). That’s money stolen from American taxpayers, and Flythe will be forced to pay it back.

Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand of the Middle District of North Carolina, jointly announced the sentencing. The investigation was led by special agents of IRS-Criminal Investigation, with the prosecution handled by Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina.

This case serves as a harsh reminder that tax fraud, no matter how sophisticated the attempt to conceal it, will be pursued by federal authorities. Flythe’s attempt to line his pockets at the expense of honest taxpayers has landed him where he belongs – behind bars. The IRS continues to aggressively investigate and prosecute those who attempt to defraud the system.