Aiding and Assisting the Filing of False Tax Returns

The federal government aggressively prosecutes individuals it believes helped prepare, advise, or caused others to file false tax returns. These cases often target accountants, tax preparers, financial advisors, and business professionals—but anyone who plays a role in causing a false return can potentially be targeted.

What is Aiding and Assisting a False Return?

Under 26 USC 7206(2), it is a felony to willfully aid, assist, procure, counsel, or advise the preparation or filing of a false or fraudulent tax return. The key elements are:

  1. A return, affidavit, or document was false in some material way;

  2. The defendant helped in preparing or presenting it; and

  3. The defendant acted willfully—with intent to violate the law.

A person need not sign the return to be culpable. If the government believes you caused false information to be included in someone else’s return, you can be charged.

Common Examples

The government may bring these charges in situations such as:

  • A tax preparer knowingly overstates deductions for clients

  • An advisor recommending a sham entity or structure used to conceal income

  • A business owner providing false documents to the accountant who files the return

  • A promoter of a tax shelter that results in clients taking false positions on their returns.

Why These Cases Are Serious

  • Felony Charges: Each false return can be charged as a separate felony, with penalties of up to three years in prison per count

  • Multiple Defendants: Both the taxpayer and the person who “aided and assisted” can be charged together or separately

  • High Stakes for Professionals: Accountants, lawyers, and financial advisors risk not just prison but the loss of professional licenses and reputations.

  • Massive Investigations: These cases often arise from broad IRS-CI investigations, where the government uses grand jury subpoenas, document seizures, and witness interviews to build its case.

Aiding and assisting in the filing of false tax returns is a serious felony that the IRS and DOJ pursue aggressively—particularly against professionals. But not every error, aggressive deduction, or disputed tax position is necessarily a crime. The government must prove willfulness, and a strong defense can make the difference. So, when the stakes are high, experience makes the difference.