On July 30, 2020, in the Eastern District of New York, Richard Barker, owner of a tax preparation business operating under the names Tax Depot, Inc. (Tax Depot) and Kampant, Parkinson, Sinclair & Co., Inc. (KPS), pled guilty to conspiracy to defraud the United States for his role in an Internal Revenue Service (IRS) fraudulent document scheme. Barker was initially charged in a six-count indictment issued on January 30, 2020.

According to the court documents, between approximately May 2011 and August 2017, Barker and his coconspirators executed a scheme to defraud the IRS by filing false Federal income tax returns through Tax Depot and KPS. The scheme involved the use of claims and fictitious forms, to include IRS Form 1099-OID, Original Issue Discount. The IRS Forms 1099-OID falsely reported that various entities had withheld Federal income tax of more than $348,000 on behalf of Barker, his coconspirators, and others. Based on the fictitious withholdings, Barker and his coconspirators prepared and filed false Federal income tax returns, for themselves and others, claiming more than $581,000 in Federal tax refunds that they were not entitled to receive. Despite the IRS sending Barker and his coconspirators notices advising that information filed was not valid and deemed to be frivolous, they continued to submit false documentation to the IRS. At sentencing, Barker faces up to five years' imprisonment. Sentencing is scheduled for January 7, 2021.

Source:  The facts in this case narrative come from the following publicly available documents: E.D.N.Y., Indict., filed Jan. 30, 2020, and E.D.N.Y., Dock. Rep., run Aug. 06, 2020.