A Ramsey tax preparer has found himself on the wrong side of the law, being sentenced to a stint behind bars for running a fraudulent tax scheme from his home-based businesses. Lyle Nierenz, 70, the man behind Fast-R-Tax and Lyle’s Tax Service, was convicted of preparing false income tax returns to illegally boost his clients' refunds – and his bank balance.
United States Attorney Andrew M. Luger announced that Nierenz was handed six months in prison followed by a year under the watchful eye of supervised release, and has also been ordered to pay restitution. According to court findings, Nierenz had a long con game where he claimed bogus tax-deductible charitable contributions and business expenses for his clients, padding their tax returns without their consent or knowledge. It was a lucrative ruse, to the tune of approximately $336,000 in tax losses between 2014 and 2018. But that wasn’t all—Nierenz made it appear clients were self-filing these dodgy documents and failed to declare their income from the preparation fees.
Yesterday's sentencing in U.S. District Court by Judge Donovan W. Frank puts an end to Nierenz's operation. The case emerged from an extensive investigation by IRS Criminal Investigations and Treasury Inspector General for Tax Administration, spotlighting another financial predator preying on the system.
The hammer came down after Nierenz pleaded guilty on July 28, 2021, to one count each of aiding and assisting in the preparation of false tax returns and making and subscribing a false return. Assistant U.S. Attorneys Jordan L. Sing and Joseph H. Thompson led the prosecution that has now put Nierenz out of the tax prep business for good.
