SOMERSET, NJ — A Somerset man has admitted to preparing fraudulent tax returns that led to more than $550,000 in losses to the Internal Revenue Service, according to court documents and statements made in court.

Vito A. Pascarella, who operated a tax preparation business, submitted returns containing false wage information and fabricated business activity, prosecutors said. He reported that clients owned and operated businesses they did not have, along with false gross receipts and fictitious expenses.

According to the U.S. Department of Justice, Pascarella’s actions caused significant financial loss to the federal government. “In total, Pascarella caused a tax loss to the IRS of over $550,000,” court records state.

Pascarella is scheduled to be sentenced on Sept. 15. He faces up to three years in prison, as well as supervised release, restitution, and monetary penalties. The final sentence will be determined by a federal judge following consideration of U.S. Sentencing Guidelines.

IRS Criminal Investigation led the probe

The case is being investigated by IRS Criminal Investigation. The announcement was made by Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Alina Habba for the District of New Jersey.

No sentencing recommendation has been publicly disclosed.

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