According to court documents, Rene R. Lopez of Van Nuys, California, prepared and filed at least 85 fraudulent income tax returns with the IRS, claiming $130,797 in false income tax refunds, from 1998 through 2001.
The Los Angeles-area jeweler, who was sentenced on Monday, received confidential client information and stock tips from London that helped him make at least $1.6 million in illicit profits over a two-year period.
The agency decided not to file a petition with the US Supreme Court by the May 12 deadline to continue a court battle on whether it has the legal authority to mandate testing and continuing education of paid tax return preparers.
The ex-KPMG senior audit partner was sentenced on Thursday for providing inside information about several of his firm’s clients to a friend, who used it to make at least $1.6 million in illicit profits.
A federal appeals court panel of three judges on February 11 upheld a lower court’s ruling early last year that the IRS does not have the legal right to regulate the estimated 600,000 to 700,000 paid tax return preparers in the United States.
A two-year-old Illinois law that required all businesses to collect state sales tax on purchases made by Illinois residents – whether or not the merchant had a physical presence in the state – was invalidated by the Illinois Supreme Court October 18.