The Darby accountant’s deceitful scheme

Read the full story on the Daily Mail

James J. Sirleaf, 65, a Darby accountant, has pleaded guilty to a multi-year scheme of assisting clients to file false income tax returns that fraudulently increased their refund amounts. The scheme, which operated between 2016 and 2019, resulted in the Internal Revenue Service losing approximately $219,622.

How it worked

• False deductions and expenses

• Fabricated business expenses

• False dependent information

Sirleaf, the sole owner and operator of Metro Financial Services Inc., a tax preparation business in Philadelphia, would prepare false and fraudulent tax forms for clients. These forms included false deductions, fabricated business expenses, and/or false dependent information, which resulted in tax calculations lower than what the clients actually owed.

Consequences

• Loss to the IRS ($219,622)

• Sentence (up to 54 years in federal prison)

• Investigation (IRS Criminal Investigation)

The scheme resulted in a significant loss to the IRS, with the total amount lost being approximately $219,622. Sirleaf faces a maximum possible term of 54 years in federal prison, and is scheduled for sentencing on September 3.

Investigation and prosecution

• Criminal Investigation

• Assistant U.S. Attorney

The case was investigated by IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Eileen Castilla Geiger.

Example of the scheme

For example, Sirleaf may have prepared a tax return for a client that included false deductions and expenses, such as a fictional business expense for a car wash, or false dependent information, such as claiming a dependent child who did not exist. These false claims would have resulted in a lower tax calculation, and a larger refund.

Repercussions for taxpayers

• Unclear

• Potential

It is unclear if there are any repercussions on the individual taxpayers who went along with the scheme, but it is possible that they may be held accountable for their role in the deception.

Conclusion

The Darby accountant’s deceitful scheme has resulted in a significant loss to the IRS and a potential prison sentence for Sirleaf. The case highlights the importance of tax honesty and the need for taxpayers to report their income accurately. Read the full story on the Daily Mail (link) for more information on the case.