Waterloo Tax Return Preparer Sentenced To Prison For Preparing And Filing Fraudulent Tax Returns
A woman who formerly operated her own tax return preparation business and prepared and filed fraudulent federal tax returns was sentenced November 19, 2013, to over a year in federal prison.
Victoria Jones, 49, from Waterloo, Iowa, received the prison term after an August 16, 2013, guilty plea to one count of aiding and assisting the preparation and filing of a false and fraudulent tax return.
In a plea agreement, Jones, who owned and operated a tax return preparation business in Waterloo, admitted she prepared and filed a false tax return on behalf of a client, fraudulently increasing the amount of the client’s refund by falsely claiming inflated business expenses and itemized deductions and falsely claiming the client was entitled to a tax credit. Jones further admitted she filed multiple other similarly false tax returns between 2007 and 2010. Finally, Jones admitted that the false and fraudulent tax returns she prepared and filed resulted in at least $30,000 in unwarranted refunds for her clients.
Jones was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Jones was sentenced to 15 months’ imprisonment and fined $15,000. A special assessment of $100 was imposed, and she was ordered to make $4,833 in restitution the Internal Revenue Service. She must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
"Tax return preparers have a duty to their clients to prepare tax returns that comply with the law and are accurate," said Sybil Smith, IRS Criminal Investigation Special Agent in Charge. "Taxpayers should not pay good money for bad advice."
Jones was released on conditions previously set by the United States District Court and is to surrender to the United States Marshal on December 16, 2013.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Internal Revenue Service Criminal Investigation Division.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 13-CR-02015.