A New Jersey man has admitted to preparing fraudulent tax returns for clients, resulting in a significant loss to the federal government.
Vito A. Pascarella, of Somerset, operated a tax preparation business where he knowingly submitted false information on behalf of clients.
Pascarella, 75, is affiliated with the Libertarian Party.
According to court documents and statements made in court, Pascarella falsified wage figures, claimed clients owned businesses they did not operate, and fabricated gross receipts and business expenses.
These actions led to a tax loss exceeding $550,000 for the Internal Revenue Service.
Pascarella entered his guilty plea yesterday and is scheduled for sentencing on September 15. He could face up to three years in prison, followed by supervised release, restitution payments, and additional financial penalties. The final sentence will be determined by a federal district court judge after reviewing U.S. Sentencing Guidelines and other legal factors.
The case was announced by Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Alina Habba for the District of New Jersey. The investigation was conducted by IRS Criminal Investigation, with prosecution handled by Assistant Chief Thomas F. Koelbl and Trial Attorney Emerson Gordon-Marvin of the Tax Division.