Inglewood-based Tax Preparer Convicted in Scheme that Sought More than $5 Million in Fraudulent

[TexasTowelie]

Inglewood-based Tax Preparer Convicted in Scheme that Sought More than $5 Million in Fraudulent Refunds


LOS ANGELES – A tax preparer and ex-California Franchise Tax Board employee was found guilty by a jury today of federal criminal charges accusing him of defrauding the IRS out of millions of dollars by declaring bogus withholdings used to fraudulently claim substantial tax refunds.

Cubby Wayne Williams, 64, of Alhambra, was found guilty of 22 counts of assisting in the preparation of false tax returns for his clients and four counts of subscribing to false tax returns for himself.

United States District Judge Percy Anderson has scheduled a December 16 sentencing hearing, at which time Williams will face a statutory maximum sentence of 78 years in federal prison.

Williams, who owns and operates the Inglewood-based tax services company Williams Financial Network, filed tax returns claiming that his clients had accrued Original Issue Discount (OID) interest income, according to the evidence presented at his four-day trial. OID is a form of interest that accrues over the life of a bond or other debt instrument, but is not payable as it accrues. Financial institutions use IRS Forms 1099-OID to report this accrued, but unpaid, income, and any tax withholdings on it.

Read more: https://www.justice.gov/usao-cdca/pr/inglewood-based-tax-preparer-convicted-scheme-sought-more-5-million-fraudulent-refunds