Accountant Sentenced to Prison for Aiding in False Tax Returns

In a shocking case of tax evasion, local accountant John E. Carter has been ordered to prison following his multiple convictions of willfully aiding and assisting in the preparation and presentation of false income tax returns.

According to court documents, Carter, a local income tax return preparer, prepared tax returns for his clients that claimed false deductions for large charitable contributions of appreciated art. The evidence proved the taxes owed to the U.S. on the five tax returns in question was more than $400,000.

United States Attorney Kenneth Magidson, along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI), announced Carter’s sentencing. A federal jury convicted Carter in February 2014 following two days of trial.

U.S. District Judge Lynn Hughes handed Carter a total sentence of 41 months in prison to be immediately followed by one year of supervised release. He was further ordered to pay $132,477 in restitution to the IRS.

The investigation into Carter’s activities was led by IRS-CI, with Assistant U.S. Attorneys Charles J. Escher and John R. Braddock prosecuting the case.

Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. The case serves as a stark reminder of the consequences of tax evasion and the importance of honest accounting practices.

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