Richland tax preparer indicted for filing fraudulent returns

A Richland tax preparer was indicted Tuesday on federal charges he filed individual returns for clients who claimed inflated refunds.

Jonathon F. Schumann, the owner of J’s Income Tax, allegedly prepared and filed at least 16 false and fraudulent returns for 2015 and 2016.

Some of the clients may have been involved in the fraud both years, according to the six-page indictment filed in U.S. District Court showing the same initials for four different people.

While the grand jury was given the full identity of each client, they are only referred to in the public documents by their initials.

Schumann charged fees for preparing the 1040 and itemized deduction forms, and normally deducted his bill from the clients’ inflated refunds, federal prosecutors said in the document.

It does not say if his business fees were based on a percentage of the refund amount.

The indictment is for 16 counts of aiding and assisting in the preparation and filing of a false income tax return.

Schumann could not be reached Wednesday about the criminal charges.

If convicted, he faces up to three years in federal prison, along with a fine, restitution and the costs of prosecution.

Schumann reportedly lives in both Richland and Las Vegas.

He was the sole proprietor of the now-closed J’s Income Tax, which once operated out of a West Gage Boulevard office, in addition to his Richland home, according to the Washington state Department of Revenue.

IRS tax preparer

In March 2003, Schumann applied for and was assigned an identification number by the Internal Revenue Service to use the electronic filing program, or e-file.

At the same time, he was approved by the agency to become an electronic return originator — an individual or entity authorized to submit electronic returns on behalf of clients for a preparation or processing fee.

Then, starting in January 2011, the IRS required all paid federal tax return preparers to have an identification number specifically for that purpose. Schumann applied for his in October 2012, according to the indictment.

Federal prosecutors allege Schumann knew his clients were not entitled to the money when he prepared individual income tax returns claiming inflated refunds.

The illegal refunds were based on itemized deductions by falsely claiming things like charitable contributions, unreimbursed employee business expenses and personal property and sales taxes, the indictment states.

“Each of these categories of deductions has different requirements and limitations on the amount a taxpayer can deduct,” according to the court document.

Employee business expenses cover everything from vehicle and travel expenses to meals and entertainment.

Court records do not show when Schumann will first appear in federal court. The case has been assigned to Judge Sal Mendoza Jr.