CINCINNATI, OH (FOX19) - A Cincinnati man was ordered to pay thousands of dollars to the IRS by a U.S. District Judge on Wednesday after filing false income tax returns.
John Humphrey, III, 46, was sentenced to 12 months of home confinement in addition to being ordered to pay more than $65,000 in restitution to the IRS. Humphrey pleaded guilty in June 2011 to charges of willfully filing a false income tax return and aiding and assisting in the preparation of a false federal income tax return.
"As we begin this tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences," said Darryl Williams, Special Agent in Charge, Criminal Investigation, Cincinnati Field Office. "Today's sentencing of Mr. Humphrey again emphasizes that the IRS and U.S. Attorney's office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
In 2004, Humphrey filed his own false federal income tax returns by omitting wage income. In 2005 and 2006, Humphrey claimed his niece as a dependent to claim a false exemption deduction and increase his Earned Income Tax Credit. Humphrey omitted more than $100,000 in gross receipts from his business, The Tax Place, in 2007. The following year, Humphrey claimed a false "Contract Labor" business expense. Humphrey also increased his clients' Earned Income Tax Credit to give the clients larger income tax refunds.
Humphrey will serve three years of probation and was ordered not to prepare his own income tax return. Also, Humphrey may not work at an income tax preparation business.