Owner of tax preparation business pleads guilty to filing false returns


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Date: January 13, 2020

Contact: newsroom@ci.irs.gov

A former Gulfport, Mississippi, tax return preparer pleaded guilty on Friday to aiding and assisting in the preparation of false tax returns.

According to documents and information provided to the court, Alvin Mays owned and operated City Tax Service, a tax return preparation business in the Gulfport, Mississippi area. From 2012 through 2017, Mays prepared—and trained his employees to prepare—false tax returns. To fraudulently inflate client refunds, the returns claimed false education credits and losses from fictitious businesses. Mays charged his clients exorbitant preparation fees, sometimes as high as $1,600 per return. In total, May's conduct caused a tax loss to the United States of more than $900,000.

U.S. District Judge Halil S. Ozerden scheduled sentencing for April 16, 2020. Mays faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release and monetary penalties. In his plea agreement, Mays agreed to pay restitution of $321,605 to the United States.