A Chicago-area tax preparer has entered a guilty plea for filing fraudulent tax returns for both his clients and himself, the Justice Department reported. Byron Taylor, who ran We Are Taxes in Dolton, Illinois, admitted to creating tax returns filled with falsified deductions and underreporting his income over multiple years. His deceptive practices spanned from the creation of bogus medical and dental expenses to fictitious business losses that unjustly netted refunds for his clients.
According to the Justice Department's statement, Taylor's unethical actions resulted in at least 54 erroneous tax returns from 2015 through 2020. Additionally, he compromised his tax affairs, significantly underreporting or failing to disclose income generated by his business, We Are Taxes. As a result, Taylor has caused the Internal Revenue Service a staggering loss of $914,745, according to court records.
The charges don't stop with tax fraud. Taylor also engaged in deceitful practices when applying for Paycheck Protection Program (PPP) loans. He submitted multiple applications filled with false statements concerning the income and operation of several businesses he claimed to own. Successful in some of his subterfuges, Taylor managed to obtain PPP funds, which he then misused on personal expenses, including gambling.
Taylor's sentencing is set for November 4 and could lead to a maximum of three years in prison for the false return filed on behalf of a client, and an equal period for his personal tax inaccuracies. The court will also consider mandatory restitution and monetary penalties, superseding the U.S. Sentencing Guidelines and other relevant factors. Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department's Tax Division announced the guilty plea. The case investigation is being handled by IRS Criminal Investigation with Assistant Chief Matthew J. Kluge and Trial Attorney Boris Bourget prosecuting.
