Springdale man guilty of filing false tax returns

Posted: November 20, 2017 at 8 a.m.

FAYETTEVILLE -- A Springdale tax preparer was sentenced to federal prison Friday for filing false tax returns.

Chad Michael Davis, 36, was sentenced to three years and 10 months to be followed by three years of supervised release on one count each of making a false claim against the United States and filing a false income tax return. He also was ordered to pay $112,308 restitution.

Davis was a tax return preparer and the owner of Lonetree Services, which he operated from his home in Springdale, during 2015 and 2016, according to court records.

Davis provided clients with draft copies of their federal and state income tax returns that he prepared and was going to file. However, unbeknownst to the clients, Davis changed the amounts on the returns so the tax refunds increased.

Davis replaced the clients' bank account and routing numbers with his so the refund was electronically deposited into his personal account. Davis spent the refunds on personal expenses. When the clients asked about their refund, Davis told them there was a foul-up with the IRS.

Davis also filed false personal federal income tax returns for himself for tax years 2012, 2013, 2014, and 2015. He knowingly failed to report the stolen refunds as well as the income he earned for preparing client tax returns. His personal tax returns fraudulently claimed refunds when Davis should have owed taxes to the IRS.

Davis waived indictment and plead guilty in June.

Judge Tim Brooks presided over the sentencing hearing in U.S. District Court.

The investigation was conducted by IRS Criminal Investigations. Assistant U.S. Attorney Brice R. White prosecuted the case.

NW News on 11/20/2017