Nyla McIntyre, Tax Fraud Scheme, California 2009

Crime Boss Caught

The United States has sued Nyla McIntyre and her firm, Approved Financial Services Inc., seeking to bar them from preparing federal tax returns for others, the Justice Department announced today.

According to the complaint filed in the case, McIntyre prepares federal income tax returns for customers claiming massive fraudulent tax refunds. The complaint alleges that one of McIntyre’s fraudulent refund requests—for a La Quinta, Calif., couple—exceeded $2.6 million.

The complaint alleges that McIntyre prepares bogus IRS Forms – including Forms 1099-OID, 1096, and Schedule B – to report bogus income tax withholding, and then requests fraudulent refunds based on the fake withholding. The complaint says that McIntyre’s scheme is part of a growing trend of filing frivolous federal tax returns and forms to steal from the U.S. Treasury.

The complaint also explains that while the Internal Revenue Service catches most frivolous refund requests before the refunds are issued, McIntyre’s scheme has actually caused the release of $1.6 million in fraudulent refunds. In 2008 and 2009, McIntyre has claimed approximately $23 million in fraudulent refunds, according to the Government.

“Taxpayers foolish enough to consider participating in the illegal scheme described in this lawsuit should consider that, in addition to risking criminal prosecution, they also risk incurring civil penalties of as much as 20 percent of the amount of their bogus refund claim,” said John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division.

On Sept. 9, 2009, a Sacramento court found that tax preparer Teresa Marty had been using the same scheme to generate bogus refunds for her customers, and preliminarily barred her from preparing tax returns for others.

Nyla McIntyre is charged with allegedly operating a $23 million dollar tax fraud scheme in the Los Angeles area. The scheme involved preparing federal income tax returns for customers claiming massive fraudulent tax refunds.

Defendant: Nyla McIntyre

Crime: Alleged Tax Fraud Scheme

State: California

Year: 2009

Amount: $23 million

Outcome: Currently facing a lawsuit seeking to bar her from preparing federal tax returns for others.

Source: https://www.justice.gov/archives/opa/pr/justice-department-sues-block-alleged-23-million-dollar-tax-fraud-scheme-operating-los