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September 30, 2020

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Siblings sentenced to prison in criminal tax fraud case

It is an unfortunate truth that, in Texas and elsewhere, some people will take advantage of a situation when they can. This may not necessarily be a bad thing when it comes to some circumstances. However, when it involves taxpayers, returns and refunds, it can result in charges of criminal tax fraud.

For instance, the IRS claimed that a brother and sister from another state teamed up to file fraudulent tax returns in order to receive refunds, which they kept for themselves. The sister worked at a tax preparation business that worked with a bank to offer refund loans. People expecting refunds could receive a loan for the amount they expect to receive, and the bank receives the refund as payment.

The North Carolina woman’s boss became suspicious when she began showing up to work with new clothes and a vehicle. An investigation revealed that she filed numerous fraudulent tax returns without the knowledge of the taxpayers and she and her brother used the money from the false refunds for personal use. Recently, both of them were sentenced to prison after entering guilty pleas earlier in the year.

An investigation may have proved that these two committed criminal tax fraud, but that does not mean every tax preparer under scrutiny from the IRS is guilty of anything. However, it may not keep the agency from moving forward with allegations. Under these circumstances, it would be a good idea to exercise the right to an attorney in order to help ensure that individual’s rights remain protected throughout the process

Tax Fraud