An indictment unsealed last week has charged a New Jersey tax preparer with preparing and filing 55 false income tax returns on behalf of clients and obstructing the Internal Revenue Service (IRS).
The charges stem from allegations that Christopher W. Demba, owner of Demba & Associates CPA LLC in Hillsborough, engaged in fraudulent practices from at least 2018 through 2023.
Demba, 61, is registered to vote in Somerset County and affiliated with the Democratic Party.
According to the indictment, Demba prepared tax returns for clients that included false deductions, credit carryforwards, and improperly recategorized income to claim expenses that would otherwise be disallowed. These actions allegedly resulted in reduced tax liabilities for his clients and significant losses to the federal government.
The indictment further alleges that Demba obstructed the IRS by providing falsified working papers to IRS personnel in an attempt to justify the fraudulent claims made on the returns he prepared. These documents were reportedly intended to mislead investigators and conceal the true nature of the tax filings.
If convicted, Demba faces a maximum penalty of three years in prison for each count of filing false returns and obstructing the IRS. Additional penalties may include a period of supervised release, restitution, and monetary fines.
Sentencing will be determined by a federal district court judge, who will consider the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division announced the charges. The case is being investigated by IRS Criminal Investigation and prosecuted by Trial Attorneys Mark McDonald and Alexis Hughes of the Tax Division.
It is important to note that an indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case highlights the ongoing efforts by federal authorities to combat tax fraud and hold accountable those who undermine the integrity of the tax system. Tax professionals are reminded of their obligation to comply with tax laws and ensure the accuracy of the returns they prepare.