SC tax preparer bilked government out of millions

Have you ever cheated on your taxes?

It would be easy to leave something out, accidentally or on purpose, or make an error about how much you earned.

When it comes to a specific South Carolina tax return preparer, there’s no doubt about his intention, he cheated on purpose and cost the government millions.

That was the ruling of the federal court in Charleston, where Stacy B. Middleton was sentenced on two felony counts of Willfully Preparing and Filing a False Income Tax Return.

Middleton, 47, who was sentenced to 41 months imprisonment and 1 year of supervised release, admitted that his scheme caused a tax loss of $3,500,000, according to the office of U.S. Attorney Beth Drake.

Middleton owned and operated MBM Tax & Accounting Services, LLC, in Charleston, according to Drake’s office, which said Middleton prepared and electronically filed more than 1,300 false and fraudulent income tax returns from 2009-11.

The false returns were made for his clients without their knowledge, according to Drake’s office.

Drake’s office said the returns contained overstated, duplicated or fictitious deductions in addition to fictitious Schedules C to maximize Earned Income Tax Credits, fabricated expenses for Schedules A, C and E, fraudulent refundable credits, and fictitious Forms 1099.