Jose Miguel Spinola, Tax Fraud, Massachusetts 2020

Brockton tax preparer Jose Miguel Spinola was sentenced to two years of probation for preparing and filing false tax returns for himself and his clients. The scheme spanned from 2014 to 2017 and resulted in a combined tax loss of $284,917.

The 51-year-old tax preparer, who owned a tax preparation business in Brockton, pleaded guilty in December 2020 to two counts of preparing false tax returns and one count of filing a false tax return.

According to court documents, Spinola prepared and filed income tax returns for clients that contained false, inflated, and incorrect information. He added ineligible expenses to his clients’ Schedule A deductions, including medical and dental expenses, unreimbursed employee business expenses, and other claims.

By inflating Schedule A deductions, Spinola decreased his clients’ taxable income and increased their tax refunds. However, he failed to disclose the false, inflated, or ineligible expenses to his clients, who were informed only of the total tax refund they would receive from the IRS.

The scheme was uncovered after an investigation by the Internal Revenue Service’s Criminal Investigations in Boston. Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the IRS’s Criminal Investigations in Boston, announced the sentencing today.

Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.

Spinola was sentenced by U.S. Senior District Court Judge Rya W. Zobel to two years of probation, with the first six months in home detention. He was also ordered to pay restitution of $284,917.

The case serves as a reminder of the importance of ensuring the accuracy and integrity of tax returns. Those who engage in tax fraud schemes can face serious consequences, including fines and imprisonment.

As the investigation and prosecution of tax fraud cases continue, the public is urged to remain vigilant and report any suspicious activity to the authorities.

Jose Miguel Spinola, 51, was sentenced on an exact date not mentioned in the source. The exact date with month/day/year of the crime was not mentioned in the source.

Source: https://www.justice.gov/usao-ma/pr/brockton-tax-preparer-sentenced-tax-fraud