INDIANA MAN INDICTED FOR RUNNING FRAUDULENT RETURN PREPARATION BUSINESS AND OBSTRUCTING THE INTERNAL REVENUE LAWS

Source: United States Attorney for the Northern District of Indiana

May 19, 2017- An Indiana man was indicted today by a federal grand jury in Hammond,
Indiana for conspiracy to defraud the United States, attempting to interfere with
the administration of the internal revenue laws, and aiding and assisting in the
preparation and presentation of false tax returns, announced Acting Deputy Assistant
Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and
Acting U.S. Attorney Clifford D. Johnson for the Northern District of Indiana.

According to the indictment, John Newlin owned and operated Quick Sam Tax Service in
Gary, Indiana. The indictment alleges that from approximately August 2008 through
January 2012, Newlin trained, coached, and encouraged his employees to prepare and
file with the Internal Revenue Service (IRS) fraudulent tax returns for taxpayer
clients. Those returns allegedly contained false business income and expenses and
false claims for the Earned Income Tax Credit, thereby generating IRS refunds to
which the clients were not entitled. The indictment further charges that after the
IRS suspended his electronic filing privileges, Newlin contracted with another
individual in Georgia to transmit and file returns for Quick Sam using that
individual’s tax preparer number.

An indictment merely alleges that crimes have been committed. Defendants are
presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, Newlin face a statutory maximum sentence of five years in prison for
the conspiracy count, three years in prison for attempting to interfere with the
administration of the internal revenue laws and three years in prison for each count
of aiding and assisting in the preparation of false tax returns. Newlin also faces
a period of supervised release, restitution and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Johnson
commended special agents of IRS–Criminal Investigation, who conducted the
investigation, and Assistant U.S. Attorney Gary Bell and John Mulcahy of the Tax
Division, who are prosecuting the case.

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