If you’re going into the business of preparing tax returns for clients, the No. 1 rule is probably that you shouldn’t start churning out bogus tax returns for them. And you definitely shouldn’t call attention to your business by setting up a YouTube channel to advertise your services.
Unfortunately, those are lessons that Marvin Flythe, 53, of Greensboro, evidently failed to take to heart.
Earlier this month, Flythe pleaded guilty to four counts of aiding and assisting in the preparation of false tax returns.
Federal prosecutors alleged that between 2012 and 2015, Flythe’s tax preparation business, TAXHOVA, drafted numerous individual income tax returns for clients on which he reported false business losses and false unreimbursed employee business expenses.
In all, Flythe admitted to filing at least 36 false returns for clients that resulted in a total of $130,949 in fraudulent refunds from the IRS. Flythe also admitted to filing false personal returns for himself between 2011 and 2013, as well as failing to file his 2014 return.
Meanwhile, Flythe maintained a YouTube channel on which he advertised his business and documented the goings on in his life. Not exactly keeping a low profile.
Flythe is scheduled to be sentenced on Nov. 14. He faces a maximum sentence of three years in prison for each count, as well as a term of supervised release and monetary penalties.
It remains to be seen whether Flythe will wind up in prison. But if “The Shawshank Redemption” is any guide, there’s always a role for tax experts on the inside.s