Harrison County man sentenced for federal income tax violation

 

Date: March 4, 2024

Contact: newsroom@ci.irs.gov

A Marshall man has been sentenced for a federal income tax violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

Boyd Lynn Butcher pleaded guilty to aiding and assisting in the preparation of false tax returns and was sentenced to 36 months in federal prison by U.S. District Judge Rodney Gilstrap on Feb. 27, 2024. Butcher was also ordered to pay restitution in the amount of $317,252.00.

According to information presented in court, between 2015 and 2017, Butcher operated a tax preparer service under the name Boyd’s Tax Service. During that time, he prepared more than 450 federal tax returns for third parties in exchange for a fee even though he was not authorized by the IRS to prepare tax returns for others. When preparing many of those returns, Butcher created false or fraudulent information to generate unwarranted tax refunds. In total, IRS determined that Butcher caused a tax harm to the IRS of more than $317,252.00. For example, Butcher prepared a 2015 tax return using tax software designed for taxpayers who self-prepare returns. The return did not reflect the fact that Butcher had prepared and filed it on behalf of another individual. The return falsely and fraudulently stated that the taxpayer was entitled under the provisions of federal laws to claim car and truck expenses from a farming business. Butcher admitted that he knew that the statement in the return was false and fraudulent because the taxpayer did not have a farming business. Butcher admitted that he knew the return was false and that he had a duty to prepare returns in a lawful manner.

“Mr. Butcher’s fraudulent actions, which included fabricating deductions that were false and misleading, not only abused the trust of sixteen people who relied on Mr. Butcher’s services, but also undermined the very foundations of our tax and government systems,” said U.S. Attorney Damien M. Diggs. “Butcher effectively stole $300,000 from the American people. We appreciate the hard work of the Internal Revenue Service as we continue to work with our partners to uphold the values of justice and fairness.”

“Boyd Butcher took advantage of those who trusted him to prepare their tax by filing incorrect, misleading, and false information to inflate their returns,” said Christopher J. Altemus Jr., special agent in charge of the IRS Criminal Investigation’s Dallas Field Office. “Mr. Butcher’s actions amount to stealing from the Federal Government and his sentencing holds him accountable for his actions. In addition to the three years he will spend in prison, he must pay restitution of more than $300,000 for the tax harm done to his 16 victims.”

The case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Dustin Farahnak.