Thanjavur Manavalan, the 65-year-old owner and operator of Bellevue-based Mano Accounting Services, has been convicted on multiple counts related to tax fraud. The conviction stems from his preparation of false tax returns for his clientele, which primarily consisted of workers in the technology sector, many originally from India.

Conviction Details and Fraudulent Activities

Jury Verdict on False Filings

Manavalan was found guilty last week on three counts of aiding and assisting in the preparation and presentation of false tax returns. During the trial, twelve different tax returns containing fraudulent information, covering tax years 2018 through 2020, were presented as evidence.

The jury ultimately convicted Manavalan on three of these counts, acquitted him on one, and could not reach a consensus on the remaining eight counts.

Types of Falsifications Revealed

Records indicate that Manavalan manipulated various financial details on his clients' filings. These alterations included fabricating charitable contributions, investment sale proceeds, and the initial cost basis of sold investments.

Furthermore, he created fictitious business losses, misrepresented rental income, and invented private loan details. Assistant U.S. Attorney Carolyn Forstein emphasized to the jury that these discrepancies were not simple errors, stating they “were not typos, they were complete inventions.”

Scheme Growth and Client Trust

Building a Business on Fraud

Prosecutors noted that Manavalan’s business expanded significantly while the scheme was active, filing thousands of returns. The popularity of Mano Accounting Services grew as clients began receiving larger tax refunds based on the fraudulent filings.

Several workers testified that they placed their trust in Manavalan to accurately handle their tax obligations. In extreme cases, Manavalan allegedly created entirely fictitious businesses showing substantial losses to claim unwarranted deductions for three specific clients.

Official Response to the Fraud

Special Agent in Charge Carrie Nordyke of IRS Criminal Investigation, Seattle Field Office, commented on the verdict. She stated, “Mr. Manavalan tried to grow his business and increase his profits through fraud, but today’s guilty verdict puts an end to these schemes.” Nordyke added that while taxes are complex, Manavalan’s actions were straightforward: “He simply lied, going out of his way to falsify his clients’ tax returns.”

Legal Defense and Potential Penalties

Defense Arguments Rejected

Manavalan’s legal team attempted to shift responsibility onto the clients, claiming they supplied the misleading information. Assistant U.S. Attorney David Martin countered this defense by suggesting that if the defense's claim were true, Manavalan must have associated with “an extremely dishonest group of clients.”

The attorney’s office confirmed that aiding and assisting in the preparation and presentation of a false tax return carries a maximum penalty of three years in prison.