A Northern Kentucky tax preparer pleaded guilty to a felony charge of aiding in the filing of false income tax returns Wednesday, the Internal Revenue Service said in a news release.
Jeffrey Jarboe of Fort Thomas ran a business called Pioneer Financial Services Inc. in Newport, helping clients prepare tax returns.
The IRS noticed that many of the returns prepared by Jarboe contained high itemized deductions, specifically business mileage and non-cash charitable donations, the news release said.
The IRS Criminal Investigation field office in Nashville sent an undercover agent to have Jarboe prepare a return. Jarboe "falsified the agent's itemized deductions to obtain the refund" even though the undercover agent's return indicated that he owed taxes, the release said.
Jarboe admitted to falsifying tax returns in 2007 and 2008, the release said. He faces a maximum of three years in prison and a fine of up to $250,000. A sentencing hearing was scheduled for Dec. 17.
Jarboe also agreed to pay restitution of more than $40,000, although that amount will be reduced by amounts collected from individual taxpayers, the news release said.