WESTCHESTER COUNTY, N.Y. - A Mount Vernon tax preparer has been found guilty of obstructing the IRS and preparing dozens of falsified income tax returns for his clients.
Samuel Gentle, 59, who ran GenGen Inc., has been convicted of obstructing the IRS and 38 counts of aiding and assisting preparation of false and fraudulent tax returns, according to United States Attorney Preet Bharara.
For four years, beginning in 2010, Gentle’s business prepared and submitted more than 3,000 tax returns annually, with several containing “various inflated deductions for unreimbursed employee business expenses, gifts to charity and Schedule C business expenses," Bharara said.
During the investigation, an undercover IRS agent posed as one of Gentle’s clients, providing him with a W-2 form showing income from wages. According to Bharara, although there were no records to support it, Gentle included fraudulent deductions in the tax return, causing it to illegally claim a refund.
Additionally, Gentle failed to report hundreds of thousands of dollars on his own tax returns from 2010 to 2014, spreading the receipts across eight back accounts in five banks. He also failed to issue proper forms to himself or employees, allowing him to conceal the amount of receipts his business received.
“About 60 percent of American taxpayers use tax professionals to prepare their tax returns. Fortunately, most tax professionals are reputable and prepare accurate and honest returns for their clients,” IRS-CI Special Agent in Charge Chantelle Kitchen said when initially announcing Gentle’s charges.
“IRS Criminal Investigation is responsible for investigating unscrupulous tax return preparers and, working with the United States Attorney’s Office, seeing that they are prosecuted. I stress the importance of choosing your preparer carefully. Ask him or her questions about your return and use your common sense in evaluating the answers you receive.””
Gentle was found guilty on all 39 counts. He will be sentenced on Tuesday, Oct. 25, where he will face a maximum sentence of three years per charge.
“As a jury found after trial, Samuel Gentle abused his position of trust as a tax preparer by systematically violating the nation’s income tax laws,” Bharara said in a statement. “ The investigation that led to this conviction underscores our commitment, as well as that of our partners at the IRS, in pursuing and prosecuting people who circumvent our tax laws.”