Encino Tax Prep Company Owner Admits to Filing False Tax Returns

Bijan Kohanzad, a 62-year-old from Calabasas and owner of an Encino-based tax preparation company, has pleaded guilty to aiding in the filing of a false tax return. This admission comes after accusations of underreporting a client’s income, resulting in a tax loss exceeding $400,000 to the IRS.

Guilty Plea and Charges

Kohanzad was charged with tax fraud under 26 U.S.C. § 7206(2). For aiding in filing false tax returns between mid-2015 and May 2017. He admitted to inflating business expenses, reducing a client’s taxable income, and evading taxes.

Details of the Fraudulent Activity

In 2015, Kohanzad falsely claimed $150,000 in advertising expenses on a corporate tax return, reducing the client’s business income significantly. This manipulation allowed the client to underreport personal taxable income, falsely declaring $127,878 instead of the actual $278,000. Kohanzad continued this fraudulent practice into the 2016 tax year, filing corporate and individual returns with exaggerated business expenses, further reducing the client’s taxable income from over $1.3 million to under $450,000.

Kohanzad’s actions caused an IRS loss of approximately $401,436 over two tax years. He acknowledged the willful violation of federal law in his plea agreement, admitting to intentionally defrauding the IRS.

Sentencing and Investigation

United States District Judge André Birotte Jr. has set the sentencing for July 12, where Kohanzad could face up to three years in federal prison. Currently released on a $100,000 bond, Kohanzad awaits his final sentencing, which will consider the U.S. Sentencing Guidelines and statutory factors.

IRS Criminal Investigation leads the inquiry into Kohanzad’s fraudulent activities, emphasizing the seriousness with which the federal government views tax evasion and fraud.