A federal grand jury indicted a Peoria, Arizona, tax preparer on March 17 for allegedly preparing fraudulent tax returns between 2019 and 2023, according to an April 1 announcement from the U.S. Attorney’s Office.
The case highlights concerns about fraudulent practices in the tax preparation industry as taxpayers approach the end of the filing season.
Butoyi Mechack, age 38, faces three counts of Making and Subscribing a False Tax Return and fourteen counts of Willfully Aiding and Assisting in the Preparation of False or Fraudulent Tax Returns. The indictment alleges that Mechack overstated credits, deductions, income, and expenses for clients through his business PTPS Tax Services LLC to reduce their liabilities or claim improper refunds. It also states that he underreported his own income on personal returns for three consecutive years.
Mechack pleaded not guilty at his arraignment held March 26 and was released under conditions. Each count of Making and Subscribing a False Tax Return carries up to five years in prison and a $250,000 fine if convicted; each count related to aiding fraudulently prepared returns carries up to three years in prison with the same maximum fine.
IRS Criminal Investigation led the inquiry into these allegations. Assistant U.S. Attorney Kevin M. Rapp is prosecuting the case for the District of Arizona in Phoenix.
Officials remind taxpayers that indictments are formal accusations only; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court. As tax season nears its end, IRS Criminal Investigation advises people to use caution when selecting preparers: “Be wary of tax return preparers who claim they can obtain larger refunds than others can,” among other tips listed by authorities.
