Maryland Tax Preparer Sentenced to More Than Two Years in Prison for Filing False Tax Returns

A Maryland tax return preparer was sentenced today to 27 months in prison for preparing false tax returns.

According to court documents and statements made in court, Adis Smith, of Chula Vista, California, and formerly of Baltimore, prepared and filed false income tax returns for his clients to fraudulently lower the taxes they owed or to generate refunds from the IRS to which they were not entitled. Smith typically reported fictitious or inflated business losses and itemized deductions. To conceal his fraud from the IRS, Smith prepared and filed each client’s tax return as a “ghost preparer,” reporting it had been self-prepared by the client rather than by Smith. In total, Smith prepared over 1,000 false tax returns and caused a tax loss to the IRS of approximately $4,729,311.

In addition to his prison sentence, U.S. District Judge Stephanie A. Gallagher for the District of Maryland ordered Smith to serve one year of supervised release and to pay $4,729,311 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Matthew Cofer and Sarah Ranney of the Justice Department’s Tax Division and Assistant U.S. Attorney Sean Delaney for the District of Maryland prosecuted the case.