Bellevue, Washington, tax preparer who falsified tax returns sentenced to 18 months in prison

Seattle - A 65-year-old Bellevue, Washington tax preparer was sentenced to 18 months in prison late yesterday in U.S. District Court in Seattle for 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 in March 2026. At the sentencing hearing, U.S. District Judge Lauren King said, Manavalan showed "complete disrespect for the law." This was a "long standing fraud scheme that ended only when the IRS showed up at your front door."

"This defendant lined his pockets and grew his business by filing fraudulent tax returns on behalf of his clients," said First Assistant U.S. Attorney Neil Floyd. "He cheated the tax system out of hundreds of thousands of dollars. My office is committed to going after fraud wherever it occurs, especially for those who expand their business through lies and deception."

"Mr. Manavalan's actions were deliberate and violated the trust placed in him by his clients and community," said Carrie Nordyke, Special Agent in Charge of IRS Criminal Investigation's Seattle Field Office. "The sentencing reflects the seriousness of his conduct and underscores our commitment to holding tax professionals accountable for their choices."

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.

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, helping his firm's year-over-year growth spike from about fifty additional tax returns to almost 300. He was paid per return, so the business growth meant he earned more money.

The trial detailed more than a dozen tax returns for tax years 2018-2020 alleged to contain false and fraudulent information. Judge King found that the total tax loss to the U.S. Treasury exceeded $250,000.

In asking for a two-year prison sentence, prosecutors wrote to the court, "This is not a story of greedy taxpayers flocking to a naïve preparer, or inexperienced staff mis-categorizing information, or innocent mistakes by Manavalan, or some combination of those excuses. Manavalan deliberately falsified the fifteen returns as part of his broader scheme to improve client results, and thus his bottom line."

In addition to restitution of $115,672, Manavalan was ordered to pay a $100,000 fine. Judge King ordered him to be on one year of supervised release following his prison term.

Manavalan has owned and operated Mano Accounting Services since 2004. He has indicated he is closing his business.

The case was 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.