Bellevue, Washington tax preparer convicted of assisting in the creation of false tax returns

Seattle - A 65-year-old Bellevue, Washington tax preparer was convicted last week of three counts of aiding and assisting in the preparation and presentation of false tax returns, announced First Assistant U.S. Attorney Charles Neil Floyd. Thanjavur Manavalan, the owner and operator of Mano Accounting Services, was convicted following an eight-day jury trial. Jurors deliberated for about two days before reaching the guilty verdicts. U.S. District Judge Lauren King scheduled sentencing for July 15, 2026.

According to records filed in the case and testimony at trial, Manavalan falsified a variety of items on clients' tax returns, including charitable contributions, proceeds and initial price (basis) of investments sold, business losses, rental income, and private loans. Manavalan's tax preparation business attracted clients who worked in the tech field, many of whom were originally from India, and they testified that they trusted Manavalan to compute and file their taxes correctly. In closing argument, Assistant United States Attorney Carolyn Forstein told the jury that the items Manavalan added to the tax returns "were not typos, they were complete inventions… (For three clients) these businesses did not exist. Manavalan made up businesses with substantial losses in order to deduct the losses on tax returns."

Prosecutors noted that Manavalan's tax prep business filed thousands of returns and grew substantially over the course of the fraud scheme. By saving his clients money on their taxes, Manavalan developed a reputation that helped build his business. That business growth meant he earned more money.

"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 Special Agent in Charge Carrie Nordyke, IRS Criminal Investigation (IRS-CI), Seattle Field Office. "Mr. Manavalan tried to grow his business and increase his profits through fraud, but today's guilty verdict puts an end to these schemes."

The trial detailed 12 different tax returns for tax years 2018-2020 with false and fraudulent information. The jury convicted on three of the twelve counts, acquitted on one count and was unable to reach a verdict on eight of the counts. The total tax loss to the U.S. Treasury from the 12 counts is estimated to exceed $420,000.

Manavalan's attorneys attempted to place the blame on the taxpayers who used Manavalan for their tax preparation, saying they were the ones who provided information to the tax preparer. Assistant United States Attorney David T. Martin countered that, if that were true, "Manavalan found an extremely dishonest group of clients." The reality was that "Manavalan took a kernel of truth and made it into a lie on the tax return."

Manavalan has owned and operated Mano Accounting Services since 2004.

Aiding and assisting with the preparation and presentation of a false tax return is punishable by up to three years in prison.

The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).

The case is being prosecuted by Assistant United States Attorneys David T. Martin and Carolyn Forstein.