SYRACUSE, NEW YORK – Phoenix Phan, age 61, of Syracuse, made her initial appearance and was arraigned today in Federal Court in Syracuse, New York on charges that she filed false federal income tax returns for herself, and aided and assisted in the filing of false federal income tax returns for others as part of her tax preparation business. Following today’s court appearance, Phan was released pending trial. The announcement was made by United States Attorney Grant C. Jaquith and Jonathan D. Larsen, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (“IRS-CI”).
As alleged in the indictment, Phan failed to report gross receipts on her personal income tax returns for tax years 2013-2017. The indictment also alleges that Phan aided and assisted others in filing false federal income tax returns, including by falsely reporting: (1) business income that the taxpayer did not earn (to increase a tax credit); (2) rental losses; and/or (3) that the taxpayer had a filing status (e.g., head of household) that the taxpayer did not actually have.
The charges against Phan carry a maximum sentence of three years in prison per count, a fine of up to $100,000 per count, and a term of supervised release of up to one year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Internal Revenue Service – Criminal Investigation (“IRS-CI”) and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.