OC Tax Preparer Arrested for Allegedly Fudging Clients' Taxes

RANCHO SANTA MARGARITA, CA A Rancho Santa Margarita owner of a tax preparation business was arrested Monday morning for allegedly filing false tax returns for his clients.

Thomas P. Butcher, 61, of Rancho Santa Margarita, faces 37 counts of aiding and assisting in the preparation of fraudulent income tax returns and one count of obstructing the administration of Internal Revenue laws.

Butcher is the owner of First Quality Tax Services in Tustin.

The indictment alleges that Butcher prepared and filed tax returns that claimed false credits and deductions that clients were not entitled to receive for tax years 2009 through 2011. According to the Department of Justice, “the tax returns included fraudulent education credits, as well as false deductions for charitable donations and unreimbursed employee expenses. The fraudulent deductions and credits lowered the taxpayers’ income tax liability.”

To help his clients, he also allegedly filed bogus receipts.

“Today’s tax deadline reminds us that our system depends on every citizen filing honest income tax returns,” said United States Attorney Eileen M. Decker. “Butcher is charged with systematically filing false and fraudulent returns for his clients without their knowledge. Butcher’s arrest underscores this office’s commitment to protect innocent taxpayers and preserve the integrity of our tax system through the prosecution of corrupt tax professionals.”

Butcher is expected to be arraigned on the indictment Monday afternoon in United States District Court in Santa Ana, California.

“On this final day of the 2016 tax filing season, those who might consider preparing false tax returns are reminded of the extremely negative consequences of doing so,” stated IRS Criminal Investigation’s acting Special Agent in Charge Anthony J. Orlando. “Today’s arrest of Mr. Butcher again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who attempt to defraud America’s tax system.”