New Jersey Return Preparer Pleads Guilty to Preparing False Tax Returns for Clients

A New Jersey man pleaded guilty yesterday to preparing false tax returns for clients.

The following is according to court documents and statements made in court: Vito A. Pascarella, of Somerset, ran a tax preparation business. Pascarella prepared, and caused to be prepared, false tax returns for clients. On those tax returns, Pascarella reported false wage numbers, falsely reported that taxpayers owned and operated businesses that they did not own or operate, and falsely reported that those purported businesses earned gross receipts and incurred business expenses that they did not.

In total, Pascarella caused a tax loss to the IRS of over $550,000.

Pascarella is scheduled to be sentenced on Sept. 15. He faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Alina Habba for the District of New Jersey made the announcement.

IRS Criminal Investigation is investigating the case.

Assistant Chief Thomas F. Koelbl and Trial Attorney Emerson Gordon-Marvin of the Tax Division are prosecuting the case.