Sacramento Man Sentenced to 12 Months in Prison for Defrauding the IRS of Over $270,000

SACRAMENTO, Calif. - Toyed Xiong, 40, of Sacramento, was sentenced Thursday to 12 months and one day in prison for one count of aiding or assisting in the preparation or presentation of a false or fraudulent tax return, U.S. Attorney Eric Grant announced.

According to court documents, for the tax years from 2018 through 2021, Xiong falsified more than 20 of his clients' tax returns to increase his clients' refund amounts and reduce their tax liabilities. He reported false businesses, false income, false expenses, and false deductions for his clients to the Internal Revenue Service. In one instance, Xiong prepared a client's 2021 tax return and falsely reported that the client incurred $10,017 in business losses when the client did not operate any business. On the same return, Xiong also falsely reported that the client was entitled to a $3,000 loss on the client's Schedule D. He knew that the client was not entitled to the Schedule C or Schedule D losses. Xiong repeated similar fraudulent conduct with respect to several of his clients' tax returns.

Xiong's conduct resulted in a loss to the IRS in the amount of $270,592, which he was ordered to pay in restitution to the IRS.

IRS Criminal Investigation conducted the investigation. Special Assistant U.S. Attorney Nchekube Onyima prosecuted the case.