Brooklyn tax preparer pleads guilty to fraud in federal court

February 6, 2024 Robert Abruzzese, Courthouse Editor

The U.S. District Court for the Eastern District of New York, more informally known as Brooklyn Federal Court, in Downtown Brooklyn. Photo: Rob Abruzzese

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In a cautionary tale that resonates particularly during the bustling tax season, Melinda Jacob, a 48-year-old former tax preparer from Lake Mary, Florida, confessed to a fraudulent scheme in a Brooklyn federal court on Monday,

Jacob admitted that she exploited the tax system to defraud the Internal Revenue Service (IRS) out of more than $1.1 million. Jacob, who operated Melinda Jacob Tax Services out of her Brooklyn home, admitted to preparing false tax returns that unlawfully inflated her clients’ refunds through exaggerated energy credits.

“While most tax preparers are reputable, it is the bad apples like Melinda Jacob who spoil the bunch,” said IRS Special Agent-in-Charge Fattorusso. “She took advantage of her role and her clients by using their returns to steal money from the government. Jacob’s plea puts her a step closer the consequences of her dishonesty and deceit.”

Jacob’s scheme involved the improper use of IRS Form 5695, which allows taxpayers to claim credits for making their homes more energy-efficient, such as installing solar water heaters or geothermal heat pumps. Jacob fabricated these expenses, leading to inflated claims for the “Residential Clean Energy Credit” and the “Energy Efficient Home Improvement Credit,” thereby boosting refunds for her clients without their knowledge of the deceit involved.

United States Attorney Breon Peace underscored the betrayal inherent in Jacob’s actions, stressing the responsibility of tax professionals to uphold honesty and accuracy in their work.

Jacob now faces a potential three-year prison sentence.