Louisville Return Preparer Guilty Of Preparing False Income Tax Returns
– Returns claimed over $430,000 in false deductions and expenses
LOUISVILLE, KY – A Louisville tax preparer pled guilty in U.S. District Court today, to charges of aiding and assisting in the preparation of false income tax returns that claimed over $430,000 in false deductions and expenses, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Stacey Elzy, 38, was charged in a 15 count federal grand jury indictment that was unsealed March 26, 2012 following Elzy’s arrest and arraignment before U.S. Magistrate Judge James D. Moyer. The returns were filed with the Internal Revenue Service (IRS).
Specifically, the indictment alleges, beginning in April 2006 and continuing through April 2008, Elzy, prepared individual income and partnership tax returns for other individuals that misrepresented and under-reported taxes owed by these taxpayers. The returns allegedly claimed fraudulent business deductions and expenses, including, but not limited to partnership losses, business expenses, and other ordinary losses.
According to the indictment, over $430,000 in false items were claimed on the returns.
At sentencing, Elzy faces no more than 45 years in prison, a $250,000 fine and a term of three years supervised release. Sentencing is schedule before U.S. District Judge John G. Heyburn II, on December 10, 2012 at 11:45 in Louisville.
Elzy was released on an unsecured $25,000 bond that was set at her initial appearance.
This case is being prosecuted by Assistant United States Attorney Terry M. Cushing and was investigated by the IRS Criminal Investigation Division.