Hillside tax preparer pleads guilty to preparing fraudulent tax returns

NEWARK –The owner of KLJ Consultants, Inc., a commercial tax preparation business located in Hillside, pleaded guilty today to willfully preparing false tax returns for clients.

Karan Jenkins, 55, entered her plea in federal court before U. S. District Court Judge William Walls. Jenkins pleaded guilty to a one count information that charges her with aiding and assisting in the preparation of false tax returns. Sentencing is scheduled for June 17.

“While most return preparers provide excellent service to their clients, a few dishonest tax preparers like Ms. Jenkins file false and fraudulent returns to defraud the government, the taxpaying public and their own clients,” stated Jonathan Larsen, acting special agent in charge, IRS Criminal Investigation, Newark Field Office. “With this year’s filing season in full swing, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today.”

According to court documents and statements made in court: Jenkins owned and operated KLJ Consultants, Inc., a tax preparation business located in Hillside. For the 2010 tax year, Jenkins admitted that she prepared a fraudulent tax return for a client that contained false deductions in the amount of $29,232.

This client was not entitled to any deductions on their 2010 tax return. This fraudulent tax return caused a tax loss to the government of $11,937. Jenkins also admitted that between 2008 and 2011, she prepared 37 other tax returns for clients that contained false information. These fraudulent tax returns caused a tax loss to the government of $138,043.

The charge of aiding and assisting in the preparation of a false tax return carries a statutory maximum prison sentence of three years and a statutory maximum fine equal to the greatest of: (1) $250,000; (2) twice the gross amount of any pecuniary gain derived from the offense; or (3) twice the gross amount of any pecuniary loss sustained by any victims of the offense.

The investigation was conducted by IRS-Criminal Investigation, Newark Field Office, under the direction Larsen and The U.S. Attorney’s Office, under the direction of U.S. Attorney Paul Fishman.

The government was represented by Assistant U.S. Attorney David Eskew.

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