SACRAMENTO, California — A Sacramento man has been sentenced to over a year in prison for aiding in the preparation of false tax returns.
Toyed Xiong, a 40-year-old resident of Sacramento, was sentenced Thursday to 12 months and one day in prison for one count of aiding or assisting in the preparation or presentation of a false or fraudulent tax return, U.S. Attorney Eric Grant announced. According to court documents, from 2018 through 2021, Xiong falsified more than 20 of his clients’ tax returns to increase their refund amounts and reduce their tax liabilities. He reported false businesses, income, expenses, and deductions to the Internal Revenue Service.
In one instance, Xiong prepared a client’s 2021 tax return and falsely reported $10,017 in business losses, despite the client not operating any business. Additionally, he falsely claimed a $3,000 loss on the client’s Schedule D, knowing the client was not entitled to such losses. Xiong engaged in similar fraudulent conduct with several other clients’ tax returns…