Louisville Return Preparer Sentenced To 27 Months In Prison For Preparing False Income Tax Returns
– Returns claimed over $430,000 in false deductions and expenses
LOUISVILLE, KY – A Louisville tax preparer was sentenced in U.S. District Court by Judge John G. Heyburn, II to 27 months in prison and ordered to pay a $1,500 special penalty assessment, for 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, pleaded guilty to all 15 counts of a federal grand jury indictment on September 10, 2012 and was sentenced on January 25, 2013. Elzy admitted in court that beginning in April 2006 and continuing through April 2008, she prepared individual income and partnership tax returns for other individuals that misrepresented and under-reported taxes owed by these taxpayers. Elzy assured her clients that the false itemized deductions and false business losses and the resulting inflated refunds were legitimate. The clients received large refunds and recommended Elzy to others, thus generating additional business. In total, the false items claimed by Elzy on the returns caused a loss of $207,243.00 to the IRS. The returns were filed with the Internal Revenue Service (IRS).
This case was prosecuted by Assistant United States Attorney Terry M. Cushing and was investigated by the IRS Criminal Investigation Division.