Kirkwood Woman Convicted of tax Fraud Charges
St. Louis, MO - Nancy Cicero was found guilty of multiple fraud charges for filing false tax returns, claiming over $3 million in refunds, for four years beginning in 2005. The three-day trial was held before United States District Judge John A. Ross.
Tax on certain bonds must be paid as interest accrues. Debt issuers such as banks, creditors and lenders provide a yearly form to their bond holders called a 1099-Original Issue Discount (OID). The form shows the OID income, as well as the federal income tax that was withheld on the OID income. To report tax liability on the interest earned, the bond holders submit the OID form to the IRS, along with income tax returns. According to testimony presented at trial, Cicero claimed false income tax refunds by submitting income tax returns to which she attached false and fictitious 1099-OID forms for the taxable years 2005-2008. On her 1040s for those years, Cicerco claimed a refund amount based upon the false federal income tax withholdings that were reported on her false 1099-OIDs. In total, Cicero represented that financial institutions withheld over $3 million in taxes on her 1099-OID forms, thus claiming a refund of over $3 million.
"The defendant attempted to defraud the taxpaying public and the government by falsifying documents and submitting claims for false refunds." Said Tanya T. Brewer, Acting Special Agent in Charge, IRS Criminal Investigation. "IRS, Criminal Investigation will continue to vigorously pursue those who attempt to unjustly enrich themselves at the expense of the rest of the taxpayers."
NANCY CICERO, Kirkwood, MO, was convicted of four felony counts of filing false claims with the IRS. A sentencing date has not yet been set.
Each count of filing false claims carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Dianna Collins and Reginald Harris prosecuted the case for the U.S. Attorney’s Office.