TAX PREPARER, LAURA A. DIGGS, SENTENCED FOR MAKING FALSE STATEMENTS ON TAX RETURNS AND ASSISTING IN THE PREPARATION OF FALSE TAX DOCUMENTS
LAURA A. DIGGS, age 41, a resident of Paulina, Louisiana, was sentenced today by U.S. District Judge Carl J. Barbier to five years probation with the first six months to be served in home confinement for one count of false statements on tax returns and one count of assisting in the preparation of false tax documents, announced U.S. Attorney Dana J. Boente. Judge Barbier also imposed a $6,000 fine and a $200 special assessment. DIGGS has made full restitution to the Internal Revenue Service of $343,526.00.
According to court documents, from approximately 2003 through the present, DIGGS, was engaged in the business of preparing and filing income tax returns at her business, Diggs Tax Service, which was located in Luling, Louisiana. From 2007 through 2009, according to the factual basis, DIGGS prepared and filed false income tax returns for her customers, which contained false Schedule A deductions, resulted in inflated refunds for her customers to which they were not entitled.
Additionally, according to the factual basis, in the years 2007, 2008, and 2009, DIGGS signed her own taxes that falsely under-reported the business income she had received. In total, DIGGS failed to report approximately $766,761 in gross income, to which there is a total tax liability of $210,233.
The case was being investigated by agents from the Internal Revenue Service Criminal Investigation Division.
The case is being prosecuted by Assistant U. S. Attorney Matt Chester.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims or have knowledge of waste, abuse, or allegations of mismanagement involving disaster relief operations, contact the National Center for Disaster Fraud toll free at: (866) 720-5721. You can also fax information to: (225) 334-4707 or e-mail it to: firstname.lastname@example.org