Bronx Woman Pleads Guilty – Tax Fraud

Published on October 28, 2009, 10:31 am
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Rosa N. Rivera, a resident of Bronx, NY, pleaded guilty earlier this week to aiding and assisting in the presentation of a false individual income tax return for clients and to filing a false individual income tax return, the Justice Department and Internal Revenue Service (IRS) announced.

Magistrate Judge Gabriel Gorenstein released Rivera on bail pending sentencing.

According to the charging information filed in Manhattan, Rivera owned and operated RNR Tax Service located in the Bronx, a firm that provided tax return preparation services to clients. Between 2003 and 2006, Rivera aided and assisted clients in the preparation of false income tax returns that were filed with the IRS. Specifically, Rivera falsified income tax returns for clients by claiming and itemizing Schedule A deductions and expenses, such as charitable contributions, medical and dental expenses and job-related expenses, that were either fictitious or grossly-inflated.

Rivera also falsified Schedule E rental property expenses and losses. Rivera’s alleged scheme to falsify deductions and expenses on her clients’ returns resulted in the reduction of taxable income reported by her clients to the IRS and, thus, fraudulently reduced the payment of income taxes lawfully owed to the U.S. Treasury.

By fraudulently reducing the reported tax liability of her clients, the information charges that Rivera was able to generate more business from prospective clients seeking assistance in the preparation of federal income tax returns.

In addition to admitting to aiding in the filing of a false tax return for clients, Rivera also pleaded guilty to falsifying her own tax return for the 2005 tax return by failing to report all her income earned from her tax return preparation business.

Sentencing is scheduled for Jan. 22, 2010. On each count to which she has pleaded guilty, Rivera faces a maximum sentence of three years in prison, one year of supervised release, substantial fines, a special assessment of $100 and the costs of prosecution.

 

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