A Bellevue tax preparer was convicted of helping clients file false tax returns in a scheme that prosecutors say involved fabricated financial details and improper deductions.
Thanjavur Manavalan, 65, owner of Mano Accounting Services, was found guilty of three counts of aiding and assisting in the preparation and presentation of false tax returns following an eight-day jury trial, according to the US Attorney’s Office in Seattle.
Jurors deliberated for about two days before reaching the verdict. US District Judge Lauren King has scheduled sentencing for Wednesday, uly 15.
Prosecutors said Manavalan falsified multiple elements on client tax filings, including charitable contributions, investment figures, business losses, rental income, and private loans.
“The items Manavalan added to the tax returns were not typos, they were complete inventions,” Assistant US Attorney Carolyn Forstein said during closing arguments.
According to court records and trial testimony, Manavalan’s business served a large number of clients working in the tech industry. Many of those clients testified they trusted him to accurately prepare and file their taxes.
Prosecutors said the business grew significantly as clients sought to reduce their tax burdens, increasing Manavalan’s income over time.
“Taxes can be complicated, but Mr. Manavalan’s scheme was not. He simply lied, going out of his way to falsify his clients’ tax returns,” said Carrie Nordyke, Special Agent in Charge of IRS Criminal Investigation in Seattle.
The case centered on 12 tax returns filed between 2018 and 2020 that contained false information. Jurors convicted Manavalan on three counts, acquitted him on one, and were unable to reach a verdict on the remaining eight counts.
The total tax loss tied to the case is estimated to exceed $420,000, according to prosecutors.
Defense attorneys argued that clients were responsible for providing the inaccurate information. Prosecutors disputed that claim, arguing the false entries were created by Manavalan.
Manavalan has operated Mano Accounting Services since 2004.
Each count carries a potential sentence of up to three years in prison.
The case was investigated by the Internal Revenue Service Criminal Investigation division.
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