A federal grand jury indicted Butoyi Mechack, a Peoria, Arizona tax preparer, on March 17 for allegedly preparing false and fraudulent tax returns between 2019 and 2023. The indictment includes three counts of making and subscribing a false tax return and fourteen counts of willfully aiding and assisting in the preparation of false or fraudulent tax returns.
According to the U.S. Attorney's Office for the District of Arizona, Mechack operated PTPS Tax Services, LLC, where he is accused of overstating credits, deductions, income, and expenses to reduce clients' tax liabilities and increase refund amounts. The indictment also alleges that Mechack underreported his own income on individual returns for the years 2021 through 2023.
Mechack pleaded not guilty during his arraignment held on March 26 and was released under conditions pending further proceedings. Each count of making a false return carries a maximum penalty of five years in prison and a $250,000 fine. Conviction for aiding in preparation of fraudulent returns carries up to three years in prison per count along with similar fines.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Kevin M. Rapp is prosecuting the case.
The U.S. Attorney's Office reminds that an indictment is only an accusation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.
As the end of tax season approaches, IRS Criminal Investigation advises taxpayers to be cautious when selecting preparers: "Be wary of tax return preparers who claim they can obtain larger refunds than others can." They also urge individuals never to sign blank forms or allow their refunds to be deposited into someone else's account.
