YOU READ IT HERE FIRST: A former Saddle River tax preparer helped scam the government out of more than $1.6 million by filing false federal income tax returns for people, as well as for himself, a federal grand jury indictment returned today alleges.
The indictment returned in Newark charges 49-year-old Wayne Dunich-Kolb with aiding and assisting in the filing of false federal income tax returns for 10 customers for five straight years, beginning in 2007.
He also was charged with doing the same for himself.
Dunich-Kolb, who’s due in U.S. District Court in Newark on Thursday, operated the business from his home, U.S. Attorney Paul J. Fishman said.
Fishman said that Dunich-Kolb convinced many of his clients to “form fictitious partnerships or corporations that existed in name only and had no business purpose other than to falsely reduce the clients’ tax liability.”
He then created bogus returns with fabricated and inflated figures for advertising, travel and other miscellaneous expenses. These created losses, which “he then used to substantially reduce taxpayers’ taxable income on their individual federal income tax returns,” the U.S. attorney said.
Dunich-Kolb similarly ginned up deductions for unreimbursed employee business expenses for home offices, mileage and other costs, he said.
Despite billing from $600,000 to $860,000 each of the four years, Fishman added, he “charged his clients an annual total of approximately approximately zero tax due and owing for tax years 2007 and 2008 and tried to obtain refunds for prior year tax payments that he never made, and substantially offset his tax liabilities for tax years 2009 and 2010 by claiming false credits for prior year tax payments that he never made.”
Fishman credited special agents of IRS-Criminal Investigation with bringing the case, which is being handled for the government by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit.
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