Cincinnati return preparer gets 30 months in jail to think about the false tax returns he prepared

A former resident of Cincinnati was sentenced to 30 months in prison by U.S. District Judge Sandra S. Beckwith for aiding and assisting in the preparation of false client tax returns and for filing a false individual income return, the Justice Department and Internal Revenue Service (IRS) announced last week.

According to court documents, Idrissa Bassoum began offering tax preparation services under the name Bassoum’s Consulting Service (BCS) in February 2003, operating out of his residence and catering primarily to immigrants. Through BCS, Bassoum prepared and filed hundreds of false tax returns for clients which claimed fraudulent expenses and deductions relating to, among other things, moving expenses, all done to lower his clients’ tax liabilities and increase their refunds. In addition to preparing false client tax returns, Bassoum fraudulently avoided the payment of any income taxes due on his business activities when he failed to report any earnings from his tax preparation activities on his personal income tax returns. As part of his plea agreement, Bassoum admitted that he caused between $400,000 and $1 million in tax loss to the U.S. government.

Bassoum’s tax preparation fees were typically subtracted from the refund amounts he obtained for his clients after arranging for Refund Anticipation Loans (RALs), a short-term consumer loan secured by the taxpayer’s expected tax refund. For each RAL approved for a client, Bassoum’s tax preparation fees were directly wired into his personal bank account. As part of his plea agreement, Bassoum admitted receiving at least $69,915 in unreported income during tax year 2004 and $80,771 in unreported income during tax year 2005.

In addition to the prison term, Judge Beckwith ordered Bassoum to serve one year of supervised release with special conditions that he not prepare any tax returns for others and to file amended personal tax returns for the years of prosecution. In addition, Bassoum was ordered to pay $44,887.80 in restitution, representing the tax loss caused by his personal income tax fraud, as well as a $300 special assessment.

You may like these other stories...

IRS audits less than 1 percent of big partnershipsAccording to an April 17 report from the Government Accountability Office (GAO), the IRS audits fewer than 1 percent of large business partnerships, Stephen Ohlemacher of the...
Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.