A Bellevue, Washington tax preparer was convicted on March 30 of three counts of aiding and assisting in the preparation and presentation of false tax returns, according to First Assistant U.S. Attorney Charles Neil Floyd. Thanjavur Manavalan, age 65, owned and operated Mano Accounting Services and was found guilty after an eight-day jury trial. Sentencing is scheduled for July 15.
The case highlights concerns about fraudulent practices in the tax preparation industry. Prosecutors said that Manavalan falsified various items on clients’ tax returns, including charitable contributions, investment details, business losses, rental income, and private loans. Many clients worked in the tech field and were originally from India; they testified that they trusted Manavalan to file their taxes correctly.
Assistant United States Attorney Carolyn Forstein told jurors during closing arguments that the items added by Manavalan “were not typos, they were complete inventions… (For three clients) these businesses did not exist. Manavalan made up businesses with substantial losses in order to deduct the losses on tax returns.”
According to prosecutors, Mano Accounting Services filed thousands of returns over several years as part of a scheme that saved clients money while increasing business for Manavalan himself. Special Agent in Charge Carrie Nordyke from IRS Criminal Investigation said: “Taxes can be complicated, but Mr. Manavalan’s scheme was not. He simply lied, going out of his way to falsify his clients’ tax returns.” Nordyke added: “Mr. Manavalan tried to grow his business and increase his profits through fraud, but today’s guilty verdict puts an end to these schemes.”
The trial covered twelve different tax returns for years 2018-2020 with estimated total loss exceeding $420,000 for the U.S Treasury; convictions were returned on three counts while one count resulted in acquittal and no verdict was reached on eight others.
Manavalan has operated Mano Accounting Services since 2004. The charge carries a maximum penalty of up to three years in prison.
