The owner of 27 tax preparation stores in central Indiana has been sentenced to four years in prison for directing the filing of more than 2,300 fraudulent tax returns. United States Attorney Josh Minkler says David R. Franklin trained his employees to over-report business losses or gains, resulting in refunds or tax credits that should not have been authorized.
The illegal filings took place between 2010 and 2012 and court documents suggest he ripped off the Internal Revenue Service by more than $1.5 million. His sentence also includes restitution the full amount and three years of supervised release after completing his jail term.
Special Agent in Charge of IRS Criminal Investigation Gabriel Grchan says "dishonest tax return preparers should take notice that your activities do not go unnoticed. IRS Criminal Investigation is focused on protecting taxpayers by exposing unscrupulous tax return preparers through criminal prosecution and today’s sentencing is another example of these efforts."
Franklin’s Instant Tax Service locations employed and trained more than 50 preparers during the two-year period.