Tax accountant pleads guilty to filing false returns

A Washougal, Washington man faces up to three years in prison and a $250,000 fine after pleading guilty this month to preparing false federal income tax returns.

David Brannum, 55, operated “Dave’s Tax Service” in Idaho and Nevada from 2003 through 2015.

The U.S. Attorney’s Office said Brannum submitted hundreds of federal income tax returns, often claiming false and fraudulent itemized deductions for his clients. According to court records, the claims decreased his clients’ tax liability and generated improper refunds.

Specifically, Brannum inflated the amounts of his clients’ charitable contributions, and that he entered amounts for un-reimbursed and unsubstantiated employee expenses that were either inflated or that he knew were not allowable. In total, court documents charged Brannum’s criminal conduct resulted in over $101,000 in tax loss.

Brannum pleaded guilty to one count of assisting, advising and counseling clients to submit materially false federal income tax returns to the IRS.

Sentencing is set for April 17 before U.S. District Judge B. Lynn Winmill at the Federal Courthouse in Boise.