San Antonio Man Sentenced to Federal Prison for Preparing Fraudulent Income Tax Returns

In San Antonio today, 57-year-old Sampson Delton Cotten was sentenced to 18 months in federal prison and ordered to pay $ 111,676.00 restitution to the federal government for his scheme to prepare and file fraudulent Income Tax returns announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.

On May 14, 2015, Cotten pleaded guilty to one count of preparing fraudulent income tax returns.  By pleading guilty, Cotten admitted that in April 2008, he prepared and filed a false tax return whereby he claimed the named taxpayer had incurred a business loss in the amount of $43,100.00 when, in fact, the individual did not have any such business or incurred any loss.

IRS-Criminal Investigation Special Agent in Charge William Cotter said, “While a majority of return preparers provide reputable service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government and their own clients.  IRS special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers, such as Mr. Cotten, who falsify exemptions and business income or losses in their elaborate schemes to defraud the U.S. taxpayer. This sentence serves as a reminder that all tax professionals have to respect the law and protect the interests of their clients and the taxpaying public.”

This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.