Jenkintown business owner charged with tax fraud

 

Date: December 3, 2020

Contact: newsroom@ci.irs.gov

Manilal Mathai (hereinafter Mathai), of Meadowbrook (Jenkintown), PA was recently charged with Tax Fraud. On December 2, 2020, an information was filed charging Mathai with three counts of filing a false tax return.

Defendant Mathai and his wife were each 50% owners of Healthcare Stat Home Care, Inc. ("Home Care"), a business that provided home care health services.

For tax years 2013 through 2015, Mathai listed false and fraudulently inflated expenses on the lists of business expense deductions that he gave his tax return preparer for tax preparation purposes. Mathai did not provide his tax return preparer with any documentation to substantiate the business deductions that he was claiming, nor did Mathai's tax return preparer have access to Mathai's bank statements, invoices, receipts, or other documentation to independently substantiate the business expense deductions that Mathai claimed.

Mathai's false and fraudulently inflated business expense deductions, resulted in fraudulently diminished net income, which was then reported on Mathai's personal tax return; yielding a fraudulently diminished tax liability. Mathai's false and fraudulently inflated business expenses resulted in a tax fraud loss of at least approximately $287,768.

"Mr. Mathai is alleged to have knowingly taken steps to fraudulently reduce his tax liability," said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. "We all have a responsibility to file a tax return when required and to pay the correct amount of tax. Filing a fraudulent tax return to evade paying taxes is, not only a violation of federal law, it is also stealing from honest taxpayers."

If convicted, Mathai could face a total maximum sentence of nine years' imprisonment, a one-year period of supervised release, a $750,000 fine, and a $300 special assessment.

The case was investigated by IRS Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Karen Grigsby.