Louisiana Tax Service Owner Sentenced to Federal Prison for Aiding in Filing False Taxes

Louisiana – U.S. Attorney Duane A. Evans announced that Leroi G. Jackson, age 50, of New Orleans, Louisiana was sentenced by U.S. District Judge Susie Morgan to three years in prison for aiding and assisting in the filing of false federal tax returns, a violation of 18 U.S.C. § 7206(2). Jackson previously pleaded guilty to this charge, which stems from his operation of The Taxman Financial Services LLC (“Taxman”), a business that prepared federal and state tax returns for customers and had offices in New Orleans and LaPlace, among other locations.

According to court documents, federal agents determined that Jackson filed false income tax returns for a number of Taxman clients. Jackson, for example, would invent false business losses or education credits without his clients’ knowledge. Jackson obtained an IRS Electronic Filing Identification Number (EFIN) for several employees, allowing them to file customer taxes. Many of these employees, however, never used their EFINs. Instead, Jackson would use the EFINs of his employees to file false tax returns for customers. Jackson made money by charging customers at least $500 per return, which was deducted from their refund. From 2014 to 2016, Jackson admitted to causing a $241,214.00 tax loss to the United States.

“Today, Mr. Jackson admitted to owning a tax preparation business that blatantly ignored the tax laws by preparing false tax returns and misusing his electronic filing privileges,” said Special Agent in Charge James E. Dorsey, Atlanta Field Office, IRS Criminal Investigation. “Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients. Criminal Investigation will continue to ensure that all tax practitioners, tax preparers and others who practice in the tax law profession adhere to professional standards and follow the law.”

In addition to the three-year prison term, Jackson was sentenced to one year of supervised release by Judge Morgan. He must also pay $241,214.00 in restitution to the United States, as well as a mandatory $100 special assessment fee. As part of his plea agreement, Jackson agreed to a permanent injunction barring him from ever preparing tax returns for any other taxpayer.

The work of the Internal Revenue Service-Criminal Investigations, which handled this investigation, was lauded by U.S. Attorney Evans. The prosecution was handled by Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale.