Springdale Man Sentenced For Tax Scheme

FAYETTEVILLE (KFSM) — A Springdale man was sentenced Thursday (Nov. 16) to nearly four years in federal prison followed by three years of supervised release for filing false tax returns, according to the U.S. attorney’s office.

Chad Michael Davis pleaded guilty in June to one count of making a false claim against the United States and one count of filing a false income tax return. He was also ordered to pay restitution of $112,308.

Davis, 36, owned Loantree Services, which he operated from his home. As part of a tax scheme, Davis provided clients with draft copies of their federal and state income tax returns that Davis prepared and said he would file, according to the U.S. attorney’s office.

However, Davis changed the figures on the clients’ tax returns causing the amount of the tax refunds to increase.

He then replaced his clients’ financial information with his, which caused the clients’ tax refunds to be electronically deposited into his personal account.

Davis told his clients there was a mistake with the IRS and spent the refunds on personal expenses.

In addition, Davis filed false personal federal income tax returns for himself in 2012, 2013, 2014, and 2015.

“IRS-Criminal Investigation will aggressively pursue corrupt return preparers like Mr. Davis who steal from their clients and file false tax returns with the IRS,” said Tracey D. Montaño, a special agent with IRS Criminal Investigation.

“Mr. Davis was entrusted with an important duty and his actions harmed his clients, other taxpayers, and the United States government.  This sentence makes it clear that anyone, including return preparers like Mr. Davis, will be held accountable for filing false returns, whether for their clients or on their own behalf.”