On March 28, 2022, in the Central District of California, Jonathan Licup was sentenced for wire fraud. Licup, the owner of a tax preparation business located in Los Angeles, California, prepared Federal and State income tax returns for a fee. He executed a scheme to defraud taxpayers and the United States Treasury of income tax return refunds.

According to the court documents, beginning January 23, 2017, and continuing through April 15, 2018, Licup fraudulently prepared his clients’ Forms 1040, U.S. Individual Income Tax Returns, by increasing refunds claimed to amounts higher than what his clients were lawfully entitled to receive. In some instances, Licup provided Forms 1040, U.S. Individual Income Tax Returns, with accurate refund amounts to his clients, but fraudulently increased the amount of charitable deductions on the copies he submitted to the Internal Revenue Service (IRS). In other instances, defendant Licup prepared his clients’ tax returns such that the refunds claimed were roughly equivalent to the amount the clients were entitled to claim.

Licup attached Forms 8888, Allocation of Refund (Including Savings Bond Purchase) to his clients’ income tax returns filed with the IRS. Without his clients’ knowledge and authorization, the forms instructed the IRS to deposit a portion of their refunds into bank accounts Licup controlled. On or about April 15, 2018, Licup caused the transmission of $2,000 by means of wire communication to an account he controlled.

Licup received 10 months’ imprisonment and three years of supervised release. He was also ordered to pay $103,645 in restitution and a $100 special assessment fee.

Source:  The facts in this case narrative come from the following publicly available documents: C.D. Cal, J., filed March 30, 2022; and C.D. Cal., Information, filed February 23, 2021.