Kenneth Knockum, Filing False Tax Claims, California 2016

A Vallejo man has been sentenced to over 3 years in prison for his role in a tax refund scheme. Kenneth Knockum, 48, was sentenced to three years and 10 months in prison for three counts of filing false claims against the United States.

Knockum was arrested in Vallejo on March 14, 2017, after failing to appear for sentencing on May 10, 2016. The arrest came after a no bail bench warrant was issued.

According to evidence presented at a three-day bench trial in January 2016, Knockum prepared and filed taxes on behalf of himself and others using an OID tax fraud scheme. He claimed massive amounts of Original Issue Discount income and requested large refunds, including one return that sought a refund of over $1.4 million and another that claimed over $500,000.

The IRS caught the majority of the false returns and declared the claims to be frivolous, although the agency did sustain losses of over $125,000 in fraudulent refunds that were actually issued.

The case was the product of an investigation by the IRS, Criminal Investigation. Assistant United States Attorney Roger Yang prosecuted the case.

Knockum's sentence is a result of his involvement in the tax refund scheme, which sought to claim massive amounts of Original Issue Discount income and request large refunds from the IRS. The scheme was uncovered by the IRS and resulted in Knockum's arrest and sentencing.

The case highlights the importance of the IRS's efforts to combat tax fraud and ensure that individuals and businesses are filing accurate and truthful tax returns.

Source: https://www.justice.gov/usao-edca/pr/vallejo-man-sentenced-over-3-years-prison-false-claims-tax-refund-scheme