Zimbabwean man indicted over US tax fraud

Zimbabwean man indicted over US tax fraud

GOVEREH: Arrested

MUTEKE: Claimed he fired Govereh and owns company

THE OFFICE

By Staff Reporter

A ZIMBABWEAN tax preparer could be jailed for five years after a United States federal grand jury indicted him for allegedly claiming false tax credits for his customers.

Onessimus Govereh, 27, prepared and filed 20 income tax returns for 2006 that claimed false credits based on the "Telephone Excise Tax Refund" (TETR).

The TETR is a one-time credit available on 2006 income tax returns designed to refund previously-collected federal excise taxes on long-distance telephone service paid from February 2003 through August 2006.

The indictment alleges that the total amount of false TETR credit claims to the IRS was $86,023.

On February 15, IRS Special Agents executed a search warrant at "Kingdom Tax Service," also doing business as "Icon Tax Service," in Norcross.

Tauya Muteke, indentified as Icon's president, told reporters after the raid that it was in fact Govereh who had prepared the tax claims. He told a local TV station that he had fired Govereh.

An IRS Fraud Detection Center identified 66 income tax returns that listed Govereh as the paid preparer. These returns claimed false TETR credits ranging from $227 to $7,407 each and totaling $261,537.

According to the affidavit, more than $568,675 in fraudulent refunds involving inflated TETR credits had been released from the Icon Tax Service location.

"This defendant allegedly cited very specific tax credits that are meant to legitimately help those who are truly eligible, and used it as a tool for illegal gains, for his clients and himself," said U.S. Attorney David E. Nahmias.

"His clients trusted him. He allegedly knew the rules and the legal use of those deductions, and betrayed the trust of his clients."

If convicted, Govereh faces up to five years in prison and a fine of $250,000 for each count of making, presenting, and assisting others in submitting false claims for refund.

In an analysis of early tax returns released early this year, the IRS said last year's top tax scam involves people who try to take inflated refunds for the one-time telephone excise tax refund.

Most tax filers are using an IRS table that allows them to claim a refund ranging from $30 to $60 depending on their number of personal exemptions.

But some tax returns were setting off alarm bells at the IRS.

Authorities say Icon Tax Services claims averaged $4 300 per client.
JOIN THE DEBATE ON THIS ARTICLE ON THE NEWZIMBABWE.COM FORUMS
newsdesk@newzimbabwe.com