Hackensack Tax Preparer Pleads Guilty to Major Tax Fraud Scheme

Bergen County Resident Admits to Evading Taxes and Filing Over 50 Fraudulent Returns

In a significant development for tax enforcement in New Jersey, a Hackensack tax preparer, Joshlyn Raye, 49, of Elmwood Park, has entered a guilty plea on charges related to tax evasion and the preparation of fraudulent tax returns. This admission came during proceedings in Newark federal court before U.S. District Judge Esther Salas, underscoring the gravity of Raye's offenses that spanned over a decade.

From March 2010 until September 2023, Raye operated JB Tax Services in Hackensack, during which she engaged in a series of fraudulent activities aimed at evading her own taxes and inflating client refunds through falsified returns. According to court documents, Raye's malpractices included the filing of 50 false tax returns for her clients and three fraudulent quarterly employment tax returns for her business, leveraging exaggerated expenses and deductions to manipulate financial figures.

The legal repercussions for Raye are severe, with the potential for up to three years of imprisonment and a $250,000 fine for each count of aiding in the preparation of a false tax return and filing a false declaration under penalty of perjury. The charge of tax evasion carries an even stiffer penalty, threatening up to five years in prison and an additional $250,000 fine. As part of her plea agreement, Raye is obligated to pay restitution amounting to $676,168 to the government and to correct her tax filings with amended returns. Her sentencing is scheduled for August 6, 2024.

This case has been brought to a head through the diligent efforts of special agents from IRS-Criminal Investigation, led by Special Agent in Charge Tammy Tomlins. Their investigative work has been crucial in unveiling the extent of Raye's fraudulent activities.

Assistant U.S. Attorney Benjamin Levin of the National Security Unit in Newark represents the government in this case, highlighting the serious implications of tax fraud and the commitment of federal authorities to uphold tax laws and integrity.

For the residents of Bergen County and beyond, this case serves as a stark reminder of the consequences of tax evasion and fraud. It also underscores the vigilance of federal tax enforcement agencies in pursuing individuals who attempt to undermine the tax system through illegal means.