plea of guilty for tax violations
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Gregory L. Carter entered a plea of guilty June 14, 2011 to the offense of “Aiding and Assisting in the Preparation and Presentation of a False and Fraudulent Return,” a violation of Title 26, United States Code, section 7206(2). Carter’s plea of guilty was entered before the Honorable Clay D. Land, United States District Judge, in Columbus. Carter pled guilty to Count One of a Twenty-Five Count indictment that was returned by the grand jury on October 28, 2010.
As stated in a plea agreement filed in the case and read in open court at the plea hearing, Carter assisted in the preparation of individual federal income tax returns in Columbus, Georgia at a tax preparation business called Tax (1) One. Carter worked at the Buena Vista Road branch office. Carter assisted in the preparation and filing of a false and fraudulent Form 1040 U.S. Individual Income Tax Return for calendar year 2008 for certain taxpayers which tax return was filed with the Internal Revenue Service on February 25, 2009. On this tax return, it was falsely claimed that the taxpayers had a Schedule C business loss in the amount of $58,740.00, it was falsely claimed that the taxpayers were entitled to a first-time homebuyer tax credit in the amount of $7,500.00, and it was falsely claimed that the taxpayers were entitled to education credits in the amount of $1,125.00. These false statements resulted in the taxpayers claiming a refund from the IRS in the amount of $21,666.00 when they were in fact entitled to a refund in the amount of $2,236.00, and resulted in a tax loss to the IRS in the amount of $19,430.00. Carter assisted in the preparation of forty-six fraudulent returns at Tax (1) One for tax years 2006 (17 returns), 2007 (23 returns), and 2008 (6 returns), resulting in a total tax loss to the IRS in the amount of $245,573.00.
Sentencing in this case is scheduled for October 27, 2011. The maximum punishment for this offense is three (3) years imprisonment, a $250,000.00 fine, one (1) year supervised release, a $100 mandatory assessment fee, together with the costs of prosecution. In the plea agreement, Carter also agreed to pay restitution to the IRS in an amount not to exceed $245,573.00. The case was investigated by agents of the Internal Revenue Service - Criminal Investigations and prosecuted by Assistant United States Attorney Paul McCommon.
Any questions concerning this matter should be addressed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office, at 478-621-2602.