BELLEVUE, Wash. — A 65-year-old Bellevue tax preparer was sentenced to 18 months in prison on Wednesday for three counts of aiding and assisting in the preparation and presentation of false tax returns.
Thanjavur Manavalan, the owner and operator of Mano Accounting Services, was convicted after an eight-day jury trial in March 2026, the U.S. Department of Justice (DOJ) announced.
“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.”
Suspect falsified everything from charitable donations to rental income
Manavalan falsified a variety of items on his clients’ tax returns, such as charitable contributions, proceeds, and initial prices of investments sold, business losses, rental income, and private loans, according to records filed in the case and testimony at trial.
Manavalan’s tax preparation business attracted clients in the tech industry, many of whom were originally from India, as the DOJ noted. These victims testified that they trusted Manavalan to compute and file their taxes correctly.
Prosecutors noted that Manavalan’s tax preparation business filed thousands of returns and grew over the course of the fraud scheme. While Manavalan saved his clients money on their taxes, he also developed a reputation that helped build his business, aiding his firm’s year-over-year growth spike from about fifty additional tax returns to almost 300.
The DOJ noted that Manavalan was paid per return, so the business growth meant that he was earning more money.
The trial determined that more than a dozen tax returns for tax years 2018-2020 were alleged to contain false and fraudulent information. Judge King also found that the total tax loss to the U.S. Treasury exceeded $250,000.
“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,” prosecutors wrote to the court in asking for a two-year prison sentence. “Manavalan deliberately falsified the fifteen returns as part of his broader scheme to improve client results, and thus his bottom line.”
Manavalan ordered to pay restitution, $100,000 fine
In addition to restitution of $115,672, Manavalan was ordered to pay a $100,000 fine. Judge King also ordered Manavalan to be on one year of supervised release following his prison term.
DOJ noted that Manavalan has owned and operated Mano Accounting Services since 2004 and that he indicated he is closing his business.
“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.”
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