Two former Washington, D.C., tax preparers have been indicted on tax charges, the Justice Department and Internal Revenue Service (IRS) announced last Thursday. Onuoha “Iggy” Nwokoro, a former D.C. tax return preparer, made his initial appearance in federal district court on tax charges. On April 12, 2011, a grand jury returned a sealed indictment charging Nwokoro with 18 counts of aiding and assisting in the preparation of false income tax returns. The indictment was unsealed on April 13, 2011, following Nwokoro’s arrest in Washington, D.C. A trial date has not been scheduled.

According to the indictment, from prior to January 2005 through April 2007, Nwokoro operated BBC Tax Services, also known as BBC Tax and Medical Billing Services, a tax preparation business in Washington, D.C. For tax years 2004, 2005 and 2006, Nwokoro prepared and electronically filed tax returns for his clients that included fictitious business income and expenses for what purported to be a computer systems business. The indictment alleges that 15 of the returns collectively report more than $1.2 million in fraudulent business losses.

According to the indictment, Nwokoro’s own 2004, 2005 and 2006, personal tax returns were also false in that they under-reported his income. If convicted, Nwokoro faces a maximum sentence of 54 years in prison and a maximum fine of $250,000.

The case was investigated by IRS-Criminal Investigation and is being prosecuted by Department of Justice Tax Division Trial Attorneys Jorge Almonte and Jeffrey B. Bender. The case is CR-11-104.

In a related matter, the Justice Department and IRS announced that John T. Hoang, a former D.C. tax return preparer, made his initial appearance today in D.C. federal district court on tax charges. On April 12, 2011, a grand jury returned a sealed indictment charging Hoang with six counts of aiding and assisting in the preparation of false income tax returns. The indictment was unsealed on today, following Hoang’s arrest in Maryland. A trial date has not been scheduled.

According to the indictment, from prior to January 2005 through at least April 2005, Hoang operated “John T. Hoang CPA,” a tax preparation business in Washington. For tax year 2004, Hoang prepared and electronically filed for his clients tax returns that included fictitious business income and expenses for what purported to be a technology licensing business. The indictment alleges that six returns collectively report more than $400,000 in fraudulent business losses.

The Hoang case was investigated by IRS-Criminal Investigation and is being prosecuted by Department of Justice Tax Division Trial Attorneys Jorge Almonte and Jeffrey B. Bender. The case is CR-11-103.

An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

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