Three Individuals Plead Guilty in Fraudulent Tax Scheme
Angenita M. Smith, 38, of Alton, Illinois, Tammy M. Smith, 36, of Alton, Illinois, and Julieanna Hughes, 32, of St. Louis, Missouri, each pled guilty on October 10, 2012, in federal district court, to Filing A False Federal Income Tax Return, which carries a maximum possible penalty of up to three years in prison. Additionally, Angenita Smith and Tammy Smith entered guilty pleas to the offenses of Conspiracy to Impede, Impair, Obstruct and Defeat the Lawful Functions of the IRS in the Ascertainment, Computation, Assessment, and Collection of Federal Income Taxes, which carries an additional maximum possible penalty of up to five years in prison and to Making False Statements to Internal Revenue Service/Criminal Investigation agents which carries an additional maximum possible penalty of up to five years in prison. Sentencing for Angenita Smith and Tammy Smith is scheduled for February 1, 2013. Sentencing for Hughes is scheduled for February 8, 2013.
The Indictment charged a total of eight individuals. Angenita and Tammy Smith admitted to being a part of a conspiracy that prepared and provided false Forms W-2 to friends and relatives for the purpose of enabling them to file false federal income tax returns and receive false federal tax refunds. The W-2's were falsified in representing that certain individuals were employees of Masters Touch Cleaning Services, Inc., a Missouri corporation. The W-2's also falsely represented wages paid, falsely represented federal income taxes withheld, falsely represented Social Security taxes withheld, and falsely represented Medicare taxes withheld.
The Indictment is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud call the I.R.S. Criminal Investigations at (618) 622-2160 or by sending the information to the Internal Revenue Service, Fresno, CA 93888.