LAWFUEL.COM – Legal Newswire Service –
Santa Ana – Tu Ky Huynh aka Tiffany Huynh of Westminster, California pleaded guilty on March 13, 2009, in United States District Court in Santa Ana to charges that she willfully aided and assisted in the preparation of false and fraudulent federal income tax returns related to tax years 2001, 2002, 2003, and 2004, and for false statements made to the Internal Revenue Service during the years 2003 and 2004. Huynh’s criminal tax trial was to start on March 17, 2009, but was vacated when she entered her guilty pleas before United States District Court Judge Alicemarie H. Stotler. She pleaded guilty to Counts 1-20 and 26 of the first superseding indictment. The indictment returned last March was superseded later last year.
Tiffany Huynh, who owned and operated TIF, Inc. located in Huntington Beach, California, was indicted last March on twelve counts of filing false and fraudulent income tax returns. According to the indictment, Huynh prepared and represented to the Internal Revenue Service that her clients were entitled to claim certain deductions or credits such as: Earned Income Credit, Child Care Expense Credit, Business Loss, Gifts to Charity, Medical Expenses, and Education Credit, however, her clients were not entitled to claim these, in violation of Title 26, United States Code, Section 7206(2).
Additionally, as stated in the indictment, Huynh knowingly and willfully made and caused to be made eight false and fraudulent Forms 2848 (Power of Attorney and Declaration of Representative) to the Internal Revenue Service during the years 2003 and 2004. Huynh falsely and fraudulently represented to the Internal revenue Service that she was a duly qualified Certified Public Accountant (CPA), however, Huynh was not duly qualified to practice as a CPA, in violation of Title 18, United States Code, Section 1001.
Specific counts in the factual basis of the filed plea agreement are detailed below, among other counts, which shows Huynh’s admissions to preparing fraudulent tax returns for her clients and making false statements to IRS:
Counts Six and Seven:
On or about February 11, 2003, Huynh prepared taxpayer B.H.T.’s 2002 federal income tax return. Huynh listed a bogus child dependent on line 6c of B.H.T.’s 2002 federal income
tax return. As a result of this bogus dependent, Huynh entered the following deductions or credits on B.H.T.’s 2002 federal income tax return: (a) on line 24, an inflated standard
deduction of $6,900; (b) on line 29, a false and fraudulent child care expense credit of $114; (c) on line 41, a false and fraudulent earned income credit of $2,425; and (d) on line 42, a
false and fraudulent additional child tax credit of $307. On or about April 15, 2004, Huynh prepared B.H.T.’s 2003 federal income tax return. Huynh listed a bogus child
dependent on line 6c of B.H.T.’s 2003 federal income tax return. As a result of this bogus dependent, Huynh entered the following deductions or credits on B.H.T.’s 2003 federal income tax return: (a) on line 24, an inflated standard deduction of $7,000; (b) on line 41, a false and fraudulent earned income credit of $2,547; and (d) on line 42, a false and fraudulent
additional child tax credit of $216.
Counts Eleven and Twelve:
On or about April 13, 2004, Huynh prepared taxpayer S.K.’s and taxpayer K.K.’s 2003 joint federal income tax return. Huynh listed a bogus business loss of $41,623 on line 12 of
S.K. and K.K.’s 2003 federal income tax return. Additionally, Huynh listed an inflated or bogus deduction on S.K. and K.K.’s Schedule A, namely, on lines 15 through 18, gifts to
charity of $5,700. On or about April 15, 2005, Huynh prepared S.K. and K.K.’s 2004 joint federal income tax return. Huynh listed a bogus business loss of $76,120 on line 12 of S.K. and K.K.’s 2004 federal income tax return. Additionally, Huynh listed an
inflated or bogus deduction on S.K. and K.K.’s Schedule A, namely, on lines 15 through 18, gifts to charity of $3,705.
Counts Thirteen and Fourteen:
On or about January 30, 2003, Huynh prepared taxpayer T.H’s 2002 federal income tax return. Huynh listed inflated or bogus deductions on T.H.’s Schedule A, namely, on lines 15 through 18, gifts to charity of $1,485, and, on line 20, unreimbursed business expenses of $9,428. On or about February 25, 2005, Huynh prepared T.H.’s 2004 federal income tax return. Huynh listed a bogus child dependent on line 6c of T.H.’s 2004 federal income tax return. As a result of this bogus dependent, Huynh entered the following deductions or credits on T.H.’s 2004 federal income tax return: (a) on line 24, an inflated standard deduction of $7,150; and (b) on line 41, a false and fraudulent earned income credit
of $2,604.
Counts One through Twenty:
When Huynh listed these various deductions, losses, and credits on the various taxpayers’ federal income tax returns described in the filed plea agreement, Huynh knew well that
the taxpayers was not entitled to claim such deductions or credits. In so doing, Huynh willfully assisted each of the taxpayers in the preparation of an income tax return that was
false. As a result of Huynh’s actions, the taxpayers’ federal income tax returns were false as to something necessary to the IRS’s determination of whether and how much income tax was owed. Huynh knew that claiming a loss or credit or deduction on a federal income tax return that the taxpayer was not entitled to take was in violation of federal law.
Count Twenty-Six:
On February 16, 2004, Huynh made and caused to be made in taxpayer A.D.’s IRS Form 2848 (power of attorney and declaration of representative) the false and fraudulent material
representation that she was duly qualified to practice as a certified public accountant, when in truth and in fact, as Huynh knew, she was not duly qualified to practice as a CPA.
The tax loss attributable to Huynh’s conduct related to the various taxpayers’ federal income tax returns was $106,292.00.
According to the filed plea agreement, Huynh agreed to make full restitution in the amount of $106,292.00 in losses caused by her fraudulent activities.
“IRS-Criminal Investigation takes the intentional and willful act of preparing false and fraudulent tax returns as a very serious matter,” said Catherine D. Tucker, Acting Special Agent in Charge, IRS-Criminal Investigation, Los Angeles Field Office. “Our special agents and their law enforcement partners will aggressively investigate those dishonest tax professionals who take advantage of the taxpayer public, and ensure the integrity of our tax system.”
“In furtherance of her scheme to defraud the government, Mrs. Huynh pretended to be a Certified Public Accountant to her clients and falsely claimed that designation on official IRS forms, which is a violation of federal law,” said Special Agent-in-Charge, Julie Parodi of the U.S. Treasury Inspector General for Tax Administration (TIGTA). “TIGTA is tasked with protecting the integrity of Federal Tax Administration and will investigate individuals who falsify their professional credentials during official IRS matters.”
Huynh is scheduled to be sentenced in Santa Ana on June 8, 2009 at 2:30PM before
Judge Alicemarie H. Stotler.
The investigation of Tiffany Huynh was conducted by IRS-Criminal Investigation, Los Angeles Field Office, in conjunction with the United States Treasury Inspector General for Tax Administration.
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