JURY CONVICTS OHIO MAN OF TAX FRAUD

WASHINGTON, D.C. - Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division; Gregory G. Lockhart, U.S. Attorney for the Southern District of Ohio; and Nancy Jardini, Chief, Internal Revenue Service (IRS) Criminal Investigation Division, today announced that following six days of trial, a federal jury in Cincinnati convicted Walter L. Daulton on charges of aiding and assisting in the preparation of fraudulent income tax returns.

“If someone helps to prepare your tax return, you must make sure the information is truthful before you sign and file it,” said Assistant Attorney General O’Connor. “Filing a fraudulent tax return may lead to costly consequences.”

“The changes included increasing the amount of deductions to achieve a certain result, without regard to whether the clients actually incurred the expenses,” said U.S. Attorney Gregory G. Lockhart said. “By his actions, Daulton was able to either significantly reduce each client’s tax bill or generate large undeserved refunds.”

“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to cheat and ultimately defraud their clients,” said Nancy Jardini, Chief, IRS Criminal Investigation Division. “IRS will continue to investigate and recommend prosecution against return preparers who knowingly prepare false tax returns on behalf of others.”

According to testimony presented at trial, Mr. Daulton, a 62-year old self-described truck tax expert, gave seminars at truck stops and trucking companies, and prepared fraudulent income tax returns for truck drivers. On many of his clients’ returns, he reported numerous fictitious expenses that his clients had neither paid nor incurred.

Assistant Attorney General O’Connor and U.S. Attorney Lockhart thanked Tax Division Trial Attorneys Del Wright, Jr., and Susanne E. Sachsman, who prosecuted the case. They also thanked the special agents of the IRS whose assistance was essential to the successful investigation and prosecution of the case.

Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax.

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