False tax returns cost government over $300K, now SC business owner is going to prison
A South Carolina man is heading to prison after he prepared and filed false individual income tax returns for himself and his clients, the U.S. Attorney’s Office said Thursday.
After a jury trial began in April, Lexington resident Jeffrey Harmon pleaded guilty to two counts of filing false tax returns, according to the U.S. Attorney’s Office.
On Wednesday, Harmon was sentenced to two years in prison, the U.S. Attorney’s Office said in a news release.
Documents and statements made in court showed Harmon owned and operated TFL Worldwide, according to the release. That was a tax preparation business that Harmon used to willfully prepare and file returns for himself and clients that claimed fraudulent deductions to which he and his clients were not entitled, the U.S. Attorney’s Office said.
To reduce his and his clients’ tax liability, Harmon consistently deducted non-deductible personal expenses, including rent and mortgage payments for personal residences, personal vacation travel, personal fitness equipment and golf, country and hunt club membership fees, according to the release.
Harmon caused a tax loss to the IRS of more than $300,000, the U.S. Attorney’s Office said.
In addition to his prison sentence, Harmon was ordered to serve one year of supervised release and to pay approximately $320,000 in restitution to the United States, according to the release.
He faced a maximum punishment of six years in prison, the U.S. Attorney’s Office said.
The case was investigated by IRS Criminal Investigation, and was prosecuted by Wilson Stamm of the Justice Department’s Tax Division and Assistant U.S. Attorneys Winston Holliday and Elle Klein, according to the release. Information on Harmon’s attorney was not available.
There was no word about what prompted the investigation.
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This story was originally published November 30, 2023 at 11:11 AM.
