GoFuckYourself.com - Adult Webmaster Forum - 2 Accountants Accused Of Helping Hundreds File False Tax Returns

http://www.wnbc.com/money/6404085/detail.html

NEW YORK -- Two accountants have been indicted on charges of tax evasion and helping hundreds of their clients file false city and state tax returns, resulting in the loss of millions of dollars.

A 21-count indictment accuses Jeffrey C. Rosner, 52, of Queens, and David E. Cohen, 54, of Staten Island, of filing false returns for themselves and their wives from 1999 through 2003, District Attorney Robert Morgenthau said Tuesday.

In those five years, Rosner and Cohen -- who had offices in the Empire State Building -- also helped at least 600 clients evade millions in taxes, charging up to $500 to prepare a tax return, the prosecutor said.

"This is a massive tax fraud," he said. "This case is one of the largest we've ever brought." He added that cases in which the tax fraud occurred before 1999 could not be prosecuted because of the statute of limitations.

Yes No
Yes No

Yes No

The city's Department of Finance said the case could lead to the recovery of at least $7.5 million in state and city income, business and sales taxes.

Finance Commissioner Martha E. Stark, warned that taxpayers cannot say they simply relied on an expert's advice. "That excuse is not valid," Stark said. "Tax cheats cost all of us."

Assistant District Attorney Gilda Mariani, head of Morgenthau's tax crimes unit, said investigators had audited "several hundred" returns prepared by Rosner and Cohen and every one contained false information.

Mariani said investigators know the names of all the suspects' clients. She and Stark suggested that people whose returns were prepared by the defendants contact the Finance Department or the district attorney before those offices contact them.

Morgenthau said both defendants taught at local colleges -- Rosner at Touro and Cohen at Rutgers and City College of New York.

As for Rosner, Morgenthau said, from 1999 through 2003 he failed to report any of the $1.2 million he earned as a tax preparer, the interest income he charged on loans to clients or the rental income he received from three New York properties.

In the same five years, Cohen underreported $500,000 in income from his accounting business, Morgenthau said. He said Cohen reported about one-third of his actual income and did not report any money he received from a rental property on Staten Island.

Besides failing to report income or pay business taxes, Morgenthau said, Rosner actually got a state and city tax refund totaling $5,000, and Cohen received refunds from the state and city amounting to $5,900.

Rosner's total tax debt to the state and city, not including penalties and interest, is about $225,000, Morgenthau said. He said Cohen owes the state and city a total of about $100,000, not including penalties and interest.

Rosner's lawyer, Richard Finkel, said, "Of course he's going to plead not guilty. He's a highly respected accountant. He will defend vehemently against the charges and in the end he will be vindicated."

Cohen's lawyer, Joseph DeMatteo, did not immediately return calls for comment.

Both defendants were expected to be arraigned later Tuesday.