March 7, 2018

Waterbury man guilty in tax-return fraud

A Waterbury man could spend as long as three years in federal prison after his conviction of preparing fraudulent tax returns, and not filing some of his own, that cost the IRS more than $400,000 in tax collections, federal prosecutors say.

Michael D. Mir, 41, waived his right to indictment and entered a guilty plea Tuesday in Hartford federal court to one count of aiding and assisting the filing of a false tax return, the Connecticut U.S. Attorney's Office said.

According to investigators and court testimony, Mir prepared more than 3,300 federal tax returns for tax years 2012 through 2015 at his Waterbury tax-preparation service.

He falsified information, investigators said, on numerous returns that he prepared for clients by fabricating business expenses, or by inflating deductible medical and dental expenses.

For his services in that period, Mir deposited more than $400,000 in income generated by his tax preparation business into his personal bank account.

However, prosecutors said Mir failed to report any income from his tax-prep business on his 2013 personal income tax return, and he only listed $18,500 in income from his business on his 2014 return. MIR did not file a personal income tax return for 2015.

Through MIR's preparation of false tax returns, and the underpayment of his own taxes, the government lost a total of $406,679, authorities said.

Mir also faces a fine of up to about $800,000 when he is sentenced June 1, prosecutors said.

Meanwhile, Mir's former tax-return clients must resolve their own tax liability directly with the Internal Revenue Service, prosecutors said.

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