A Green Valley accountant, William Stearnes, who operated Stearnes Tax & Accounting Team has been indicted on multiple charges of filing false tax forms.
Stearnes was indicted by a federal grand jury on September 25, on 30 counts of preparation and presentation of false federal income tax returns.
Stearnes’ arraignment is set for October 11, 2019 at 11:00 a.m., before Magistrate Judge Bernardo P Velasco.
According to court documents:
“Stearnes primarily prepared and filed federal income tax returns for federal law enforcement officers, principally Border Patrol Agents. Stearnes held himself out as an “expert” in federal law enforcement tax returns who is able to get his clients significant tax refunds due to his “specialized” knowledge in deductible unreimbursed employee expenses (UEE). As a result, Stearnes developed a very sizeable law enforcement clientele based on referrals by his clients who in many cases received very favorable refunds or reduced tax liability.
“Beginning in or before 2014, Stearnes willfully and knowingly prepared and filed false federal income tax returns with Schedule A Itemized Deductions with the IRS for his clients which claimed improper and/or inflated, unreimbursed employee expenses (UEE) as a deduction against income.
“These improper unreimbursed employee expenses (UEE) included but were not limited to meals and entertainment expenses; clothing which was suitable for personal use such as socks and t-shirts; watches; home office deductions which deducted a portion of the cost of the client’s home expenses including items such as utilities; trash pick-up, pest control and landscaping costs; homeowner association dues; inflated home laundry expenses; personal cellphone charges; personal cellphone cases and accessories; home computers and internet fees; gym clothing; gym equipment and gym membership fees; vitamins and supplements; sunglasses; law enforcement type equipment for personal use; personal firearms; ammunition and firearm range fees; commuting miles from home to work; and, “business miles” incurred for personal reasons.
“Stearnes would also routinely not ask the client to produce receipts to verify the expenditures claimed as unreimbursed employee expenses (UEE) but rather would ask the client to merely estimate the expenses, which were often exaggerated.
“The federal income tax returns that Stearnes prepared and filed with the IRS which included falsely claimed Schedule A unreimbursed employee expenses (UEE), served to increase his client’s federal income tax refund amount, or to reduce their tax liability.
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