U.S. Grand Jury Indicts Tax Preparer

A local tax preparer has been indicted by a federal grand jury for allegedly helping his clients prepare false tax returns, U.S. Atty. Lourdes G. Baird said Wednesday.

Lee A. Toney, 49, also known as Tony Lee, was indicted Tuesday in Los Angeles for allegedly advising his clients to claim bogus deductions and credits to reduce the amount of federal income tax they would pay, according to IRS spokeswoman Judith Golden.

The 10-count indictment charges that Toney, between 1984 and 1985, instructed his clients to claim deductions for losses related to solar heating of homes on their individual tax returns. Toney also had his clients claim false investment and residential energy credits to decrease their taxes, the indictment said.

Attempts to contact Toney were unsuccessful.

If convicted on all counts of aiding in preparation of false tax returns, Toney could face a maximum sentence of 30 years in prison and a $1-million fine. He could also be liable for tax-preparer penalties and interest, authorities said.

An arraignment date has not yet been scheduled.