Tax preparer in Burnsville has been charged with fraud

Last update: March 25, 2008 - 11:41 PM

A 37-year-old Burnsville man who ran a Minneapolis tax preparation business has been charged with helping his clients claim false tax credits and refunds.

Abdikarim Osman Mohamed, who did business under the name Amal Tax Return, was indicted Thursday on 32 counts of aiding and assisting in the preparation of false tax returns.

The indictment, which was unsealed Tuesday, lists the initials of 27 of Mohamed's clients. It says Mohamed prepared their returns in 2003 and 2004, helping them to file phony education credits totaling $44,202. Each dollar of education claims reduces the amount of taxes owed by $1.

The Internal Revenue Service (IRS) says that fraud by tax preparers is among the 12 "most egregious tax schemes and scams" it's targeting this year.

The indictment says that Mohamed also helped five of his clients to submit other false claims totaling $61,285. These included charitable contributions, unreimbursed employee expenses, federal fuel credits and other expenses.

According to the indictment, taxpayers filed false refund claims exceeding $40,000.

Mohamed could not be reached Tuesday for comment.

If convicted, he faces up to three years in prison on each count.

The case resulted from an investigation by the IRS Criminal Investigation Division and the Minnesota Department of Revenue. The prosecutor is Assistant U.S. Attorney Michael L. Cheever.

DAN BROWNING

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