Tax Preparer Sentenced

[Number Six]

According to court documents and statements made in court, THORNDIKE was the founder and owner of Cornerstone Financial Services of Woodbury, LLC (“CFS”), a tax preparation and financial services business. As the owner of CFS, THORNDIKE prepared federal tax returns for individuals and businesses in exchange for payment of a fee. In the course of preparing many of his clients’ tax returns, THORNDIKE improperly reduced the amount of tax due in a variety of ways, including falsely claiming deductions for charitable contributions, and falsely claiming deductions for job expenses.

THORNDIKE also offered clients an opportunity to purchase audit insurance. Purchasers of audit insurance could elect to be represented by THORNDIKE in connection with any Internal Revenue Service audit of their individual federal income tax returns. If clients were audited by the IRS, THORNDIKE would provide them with blank Goodwill receipts as well as instructions as to how they should create a list of charitable donations that would correspond with the donation value THORNDIKE had entered on their returns. He also would direct his clients to create mileage logs that would support deductions he had entered for employment-related travel.
http://www.justice.gov/usao/ct/Press2013/20130312.html

[grixit]

Audit Insurance Coverage Validation:

This is to certify that if my client should be at risk of penalties due to my fraud, i will assist them in committing further fraud.

[Number Six]

http://www.justice.gov/usao/ct/Press2013/20131029.html

A former police detective was also nabbed on tax fraud charges as part of this larger fraud.