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Crime Pays, Until You Get Caught: Ramsey Tax Preparer Sentenced for $336k Tax Fraud Scheme
ST. PAUL, Minn. – Lyle Nierenz, a 70-year-old tax preparer from Ramsey, Minnesota, was sentenced to six months in prison followed by one year of supervised release and ordered to pay restitution for operating a tax preparation business as cover for a massive tax fraud scheme, announced United States Attorney Andrew M. Luger.
According to court documents, Nierenz ran two tax preparation businesses – Fast-R-Tax and Lyle’s Tax Service – out of his home in Ramsey. He prepared and filed numerous income tax returns falsely claiming that his clients had significant tax-deductible charitable contributions, unreimbursed employee expenses, or unreimbursed business expenses without their knowledge or permission.
Nierenz then diverted a portion of the inflated refunds to his personal bank accounts. To avoid detection, he repeatedly made it appear that his clients self-filed their fraudulent returns. He also provided many of his clients with a doctored copy of their tax returns that matched the refund the client actually received.
Between tax years 2014 and 2018, Nierenz’s fraudulent return scheme resulted in a tax loss of approximately $336,000. Nierenz also repeatedly failed to declare on his own tax returns the income he generated by charging his clients for tax preparation.
Nierenz pleaded guilty to one count of aiding and assisting in the preparation of false tax returns and one count of making and subscribing a false tax return on July 28, 2021. He was sentenced yesterday in U.S. District Court by Judge Donovan W. Frank.
This case is the result of an investigation conducted by IRS Criminal Investigations and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorneys Jordan L. Sing and Joseph H. Thompson prosecuted the case.
Nierenz’s scheme may have brought in a quick buck, but it ultimately led to his downfall. His prison sentence serves as a reminder that tax fraud will not be tolerated, and those who engage in such activities will be held accountable.
Key Facts
- State: Minnesota
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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