2 Men Plead Guilty to Tax Code Violation

Two men from a west San Fernando Valley accounting firm have pleaded guilty to helping a “client”--actually an undercover federal agent--file false financial statements with the IRS, the U.S. attorney’s office announced Friday.

Accountant Benjamin Hunnicutt and attorney Robert Marshall, both of Hunnicutt, Okamato & Associates in Woodland Hills, each admitted a single felony charge of violating the tax code, according to U.S. Atty. Nora M. Manella.

They now could each face up to three years in federal prison, a $250,000 fine and loss of their professional licenses, she said.

“When someone owes a large debt to the IRS and does not have the means to pay it, the IRS can accept what is called an ‘offer in compromise,’ which allows them to settle the liability for less than the amount owed,” said Alicia Villareal, assistant U.S. attorney.

But Hunnicutt and Marshall broke the law when they instructed an undercover IRS agent to underreport the value of some assets and conceal others on financial statements, Villareal said.

The two guilty pleas Friday were part of a ongoing IRS operation, known as “Bogus Offer,” which targets individuals who help people avoid their taxes. Last year, Beverly Hills tax advisor Marvin Schaffer of Kaye Kotts & Associates also pleaded guilty to counseling an undercover IRS agent not to report assets.

Hunnicutt and Marshall will be sentenced by U.S. District Judge Terry Hatter on May 5.