Philly tax preparer sentenced to prison for falsely claiming clients owned non-existent wind turbines and solar panels.

A Delaware County man has been sentenced to three years in federal prison for filing fraudulent tax returns on behalf of his clients. James Jean, the owner of Jean Tax Financial & Notary Services based in Southwest Philadelphia, undertook the preparation of at least 146 tax returns that falsely claimed various energy credits, including those for wind turbines, solar panels, and geothermal heating systems, which his clients did not possess.

The 57-year-old Yeadon resident pled guilty last year to one count of aiding and assisting in the preparation of a false tax return. In his plea agreement, he acknowledged filing an additional 145 false returns for over 50 clients during the tax years 2018, 2019, and 2020. Furthermore, Jean admitted to submitting inaccurate returns for his own financial obligations during this time.

According to court documents, Jean’s actions resulted in a reduction of his clients’ tax liabilities and his own by more than 7,000 through the inclusion of false information that he did not verify with his clients. Evidence presented by prosecutors suggested that he willfully added this false information without gathering any substantiating details from his clients regarding the claimed expenditures. His lack of communication extended to not reviewing the returns with clients, leaving many unaware that misleading energy credits had been used to inflate their refunds or reduce their tax burdens.

Jean’s motivation, as detailed in the prosecution’s statement, appeared to be an effort to enhance client satisfaction and increase refund amounts. Despite his guilty plea, he continued to work as a tax preparer after his admission of guilt, a fact unknown to court officials and prosecutors at the time. In a striking violation of his legal obligations, Jean used the electronic filing identification number of his ailing mother to submit over 1,000 tax returns, defying previous claims that he had ceased operations in the field to pursue other work as a ride-share driver and in home health services.

The continuation of his illegal activities led prosecutors to seek a more severe sentence, recommending a term of imprisonment ranging from 41 to 51 months. However, U.S. District Judge John F. Murphy imposed the statutory maximum of three years. In addition to his prison sentence, Jean is required to undergo one year of supervised release, and he has been ordered to pay a ,000 fine along with more than ,000 in restitution to cover the tax losses resulting from his fraudulent activities. His clients may also face increased tax liabilities as a consequence of the false returns prepared under his guidance.

Jean’s business operations occurred from a rowhouse in the Elmwood district of Southwest Philadelphia, where he advertised flat fees for tax preparation services. The implications of his actions extend beyond his own legal troubles, reflecting the significant legal and financial consequences that can arise from tax fraud.