Defendants Arraigned On Charges Of Conspiracy, Filing False Tax Returns, And Filing False Claims With The I.R.S.

Damian Jackson and Holly Jackson, of Sterling Heights, Michigan, were arraigned today on charges of conspiracy, filing false tax returns, and filing false claims with the Internal Revenue Service, announced United States Attorney Barbara McQuade.

McQuade was joined in the announcement by Jarod Koopman, Acting Special Agent of the Detroit Field Office of the Internal Revenue Service Criminal Investigation.

According to court documents, Damian Jackson owns Diamond & Associates Enterprises, Inc. and he and Holly Jackson did business as Diamond Tax Services, offering tax preparation services to their clients.  Beginning in approximately April 2009 and continuing through April 2010, the Jacksons conspired with one another to defraud the United States by filing false claims for federal income tax refunds for their clients. The Jacksons are also accused of filing false federal income tax returns for themselves.

The Jacksons helped others to obtain payment of false claims for refunds from the Internal Revenue Service (IRS) by preparing and submitting U.S. Income Tax Returns (Forms 1040), falsely claiming substantial 1099-OID income and withholding taxes and claiming refunds.  The Jacksons caused more than $1,076,969 in false and fraudulent income tax refund claims to be filed with the IRS.  The Jacksons received fees from their clients for preparing the false returns as well as receiving a percentage of the false refunds they caused.

The court documents also allege that the Jacksons filed false Individual Income Tax returns for themselves for the 2007 and 2008 tax years claiming false income tax withholding and requesting refunds of more than $1,045,625 which they knew they were not entitled to.  Additionally, Holly Jackson filed a false income tax return for the 2009 tax year, claiming a refund of $141,795, knowing that the claim was false.

“The Jacksons went to elaborate lengths to steal money from the American taxpayers, who are the ultimate victim when anyone commits a tax crime.  IRS Criminal Investigation focuses on identifying, investigating and prosecuting abusive return preparers.  Every taxpayer should be reminded to exercise caution when selecting a return preparer since it is the taxpayer that is ultimately responsible for the content of their return and the repayment of a fraudulent refund, along with any penalties and interest,” said Acting Special Agent in Charge Jarod Koopman. 

This case was investigated by special agents of the Internal Revenue Service Criminal Investigation and is assigned to the White Collar Crime Unit of the United States Attorney’s Office.