Minnesota tax preparer convicted after filing false returns seeking fraudulent federal refunds.
A Minnesota tax preparer has been found guilty after a federal jury concluded that he filed false tax returns that produced refunds clients did not have the right to receive. Prosecutors said the business owner built a tax preparation service around false claims that promised larger refunds than other preparers could provide. Specifically, he promised clients he could “unlock special credits other pros allegedly did not know about.” The case ended with convictions on 20 criminal counts of tax fraud.
Court records showed that Cortez Hollis owned and operated Hollis Tax Time in Minnesota. During the trial, prosecutors said clients were told that special tax credits and deductions were available even though other tax professionals had failed to find them. Instead of uncovering real savings, authorities said Hollis added fake business information to tax returns. The returns listed businesses that did not exist and reported business losses that clients had never experienced. Those made-up losses lowered taxable income and increased refund amounts beyond what federal tax law allowed.
Hollis submitted the false returns to the Internal Revenue Service. The fake business losses added to the returns totaled more than $1 million. Prosecutors also said the returns requested about $387,000 in refunds that clients were not legally entitled to receive. Hollis himself often collected tax preparation fees of $2,000 or more from the refunds generated by the false returns. In some cases, prosecutors said those payments were taken without the clients knowing the full amount being collected from their refund money.
The Department of Justice (DOJ) said tax fraud weakens confidence in the nation’s tax system because honest taxpayers are expected to follow the same rules. Officials stated that people who create false returns for financial gain can face criminal charges when investigators gather enough evidence to prove wrongdoing. The department said it continues to pursue cases involving false tax filings and other financial crimes that involve government agencies or public funds.
During the trial, jurors reviewed financial records, tax documents, and other evidence connected to the returns prepared through Hollis Tax Time. After hearing the evidence, the jury convicted Hollis on 20 counts of aiding or assisting in the preparation of false tax returns. Each count carries a maximum possible prison sentence of three years under federal law, although the final punishment has not yet been decided. A sentencing hearing will take place at a later date. Before determining the sentence, a federal judge will review the facts of the case along with federal sentencing rules and other legal factors. The maximum possible sentence does not automatically mean that amount of prison time will be ordered.
The announcement of the conviction was made by Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Daniel Rosen for the District of Minnesota. The investigation was handled by IRS Criminal Investigation. The case was prosecuted by Assistant Chief Eric B. Powers and Trial Attorney Megan E. Wessel of the DOJ’s Criminal Division Tax Section.
Sources:
Minnesota Tax Preparer Convicted of Preparing $1M+ in False Tax Returns for Clients
Join the conversation!