Winter Haven tax preparer sentenced to more than six years in federal prison and ordered to pay over $1.6 million in restitution to the IRS

Date: Feb. 11, 2026

Contact: [email protected]

Tampa, FL - Timothy Smith has been sentenced by U.S. District Judge Steven D. Merryday to six years and six months in federal prison for conspiracy to commit wire fraud and aiding and assisting in the filing of false and fraudulent tax returns. As part of his sentence, the court also entered an order of forfeiture in the amount of $274,000, the proceeds of the criminal conduct, and ordered Smith to pay restitution in the amount of $1,637,829.64.64 to the Internal Revenue Service (IRS). Smith entered a guilty plea on Sept. 26, 2025. U.S. Attorney Gregory W. Kehoe made the announcement.

According to court documents, beginning in January 2023 and continuing through February 2024, Smith engaged in a scheme to defraud the IRS. Smith prepared or assisted in the preparation of 97 false and fraudulent tax returns for 92 taxpayers, including himself, for tax years 2022 and 2023. The tax returns contained falsified Schedules A, C, and 1, as well as fraudulent Forms W-2G. The returns contained fabricated figures for gambling winnings and losses, and federal tax withholding amounts (based on the fake gambling winnings). The false tax returns requested substantial refunds from the IRS that the taxpayers were not legally entitled to receive.

The total intended tax loss from the tax returns Smith prepared was $17,612.039. The actual loss totaled $1,637,829.64, which the IRS paid out to taxpayers either as tax refunds or credits applied to prior debts. Smith personally profited $274,000 in the form of payments from his taxpayer-clients.

This is the fourth individual to be sentenced as part of this scheme. All sentences are reflected below.

"These defendants orchestrated a deliberate scheme to steal from American taxpayers," said Ron Loecker, Special Agent in Charge, IRS Criminal Investigation, Florida Field Office. "Their calculated, malicious conduct showed complete disregard for the rule of law. These sentences affirm a core principle: those who abuse our tax system for personal gain will be held accountable. IRS Special Agents continue to safeguard the integrity of the tax system and deliver justice for American taxpayers."

These cases were investigated by the Internal Revenue Service - Criminal Investigation. They were prosecuted by Assistant United States Attorneys Ross Roberts and Jennifer Peresie. The forfeitures are being handled by Assistant United States Attorneys James Muench and Suzanne Nebesky.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.