Charleston man pleads guilty to tax fraud charges

CHARLESTON COUNTY, S.C. (WCBD) – A 55-year-old Charleston man pleaded guilty in federal court this week to aiding and assisting in the preparation of false and fraudulent income tax returns which authorities said contained false deductions.

The U.S. Attorney’s Office for the District of South Carolina said evidence that was presented during a plea hearing revealed David Washington operated a fraud scheme in which he would claim false business losses for taxpayers to offset reported income.

Investigators determined that the defendant’s customers provided correct tax-related information with the expectation that he would accurately file the returns for them.

Prosecutors said the amount of the business loss fraudulently claimed by Washington generated a substantial tax refund to which the taxpayers were not entitled and resulted in a significant loss of tax revenue to the government.

“The vast majority of tax preparers, like taxpayers, are truthful and honest in their work product, calculations, and submissions,” said U.S. Attorney Adair F. Boroughs. “Those who seek to violate the tax laws, however, will face this Office and our federal partners at the IRS as we will continue to investigate and vigorously prosecute those who violate the law.”

Washington faces a maximum sentence of three years in federal prison and a fine of $250,000.

United States District Judge David C. Norton, who accepted the guilty plea, will sentence Washington after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.

The case was investigated by the IRS. Assistant U.S. Attorney Amy F. Bower prosecuted the case.