Allegedly Filed Fraudulent Amended State Tax Returns for Clients
A self-employed tax preparer was arrested today on one felony count of filing fraudulent state income tax returns, the Franchise Tax Board (FTB) said.
Roosevelt Kyle, 62, of San Diego, allegedly filed fraudulent amended state income tax returns on behalf of nearly a dozen clients. According to FTB investigators, Kyle inflated the itemized deductions, such as cash contributions, non-cash contributions, business expenses, and work-related clothing in order to obtain a larger tax refund for each client. Kyle then inflated the fees he charged his clients for his services.
If found guilty, Kyle faces a maximum term of three years in state prison, plus restitution to the FTB of the more then $10,000 in fraudulent refunds plus penalties, interest, and the cost of the investigation.
Overstating deductions is part of the $6.5 billion dollar tax gap facing California. The tax gap is defined as the difference between the tax that is due and the tax that is collected.
The fraud was detected by FTB’s internal fraud detection procedures.
Kyle was booked into the San Diego Central Jail and his bail is set at
$150,000. Kyle’s preliminary hearing is scheduled for October 11.