News and Press Releases

Kirkwood woman sentenced on tax fraud charges

FOR IMMEDIATE RELEASE
September 11, 2013

St. Louis, MO – NANCY CICERO was sentenced to 33 months in prison on multiple fraud charges for filing false tax returns, claiming over $3 million in refunds, for four years beginning in 2005.
           
According to testimony presented at trial, 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, Cicero 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.

"Today's sentence demonstrates our unwavering commitment to protecting the interests of law-abiding taxpayers," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.  "We will continue to investigate the criminals who engage in such brazen and fraudulent conduct, ensuring that the only citizens who receive tax refunds are those who are entitled to them."

Cicero, Kirkwood, MO, was convicted in May of four felony counts of filing false claims with the IRS.  She appeared today for sentencing before United States District Judge John A. Ross.

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.

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