A resident of Newburgh, New York, pleaded guilty today to conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Jose Andreu filed false tax returns with the assistance of a return preparer. From 2011 through 2019, Andreu and others prepared and filed false returns through two tax preparation firms that reported significant tax withholdings based on fictitious Forms 1099-OID, in an effort to fraudulently obtain refunds from the IRS. The Forms 1099-OID falsely reported that financial institutions, creditors, and other entities had withheld federal income tax, when in reality no such taxes had been withheld. Andreu also filed false returns for himself and others, claiming more than $2,125,872 in refunds from the IRS.
U.S. District Judge Eric R. Komitee scheduled sentencing for Feb. 24, 2021. Andreu faces up to five years in prison, as well as monetary penalties. As part of his plea agreement, Andreu has agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Ann Marie Cherry and Mark Kotila of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.