Morton Grove Tax Preparer Bilks IRS $232,000

A Morton Grove tax preparer used a variety of ways to cheat the Internal Revenue Service of about $232,000 in taxes owed, according to a statement from the office of the Patrick Fitzgerald, the U.S. Attorney for the Northern District of Illinois. 

Rimando Naig Dumdum, 44, who operates Richman Tax Solutions, pleaded guilty to the charges. He agreed to pay $231,758 in restitution to the IRS for taxes owed, and he also faces prison time and additional financial penalties. 

The government said he failed to file income tax returns on behalf of his business, filed false personal income tax returns, and prepared a dozen false income tax returns for clients between 2006 and 2009. 

Dumdum, who trained as a tax preparer and had an undergraduate degree in accounting in his native Philippines, according to the statement, pleaded guilty in U.S. District Court to one count each of:

• failing to file a business tax return, 
• filing a false individual income tax return, and 
• wilfully aiding in preparing a false tax return. 

He faces a maximum penalty of one year in prison and a $100,000 fine for failing to file a tax return, and three years in prison and a $250,000 fine on each count of filing or preparing a false tax return. 

A written plea agreement contemplates an advisory federal sentencing guideline range of 24 to 30 months in prison. 

In addition, Dumdum must pay the costs of prosecution and he remains liable for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. 

U.S. District Judge John W. Darrah set sentencing for June 21.        

The government is being represented by Assistant U.S. Attorney Stephen P. Baker. 

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