York, PA Tax Services Office Manager Charged with Filing of Fraudulent Federal Tax Returns
The United States Attorney's Office for the Middle District of Pennsylvania announced the filing of a Criminal Information late Monday charging Carmen Olga Real, age 35, with conspiring to submit false and fraudulent claims for payment to the Internal Revenue Service.
According to United States Attorney Peter J. Smith, from on or about January 1, 2009, through on or about June 1, 2009, Real, a manager of a tax service franchise located in York, Pennsylvania, conspired with others to prepare and submit false tax returns with the Internal Revenue Service to obtain fraudulent refunds.
As part of this tax fraud scheme, Real prepared returns for clients that included a combination of false information containing bogus dependents, Head of Household filing status, Earned Income Tax credit, and Child Tax Credits. By including this fraudulent information on the federal income tax returns, Real was able to generate larger refunds for her clients.
An acquaintance of Real's allegedly assisted in the scheme by recruiting clients for Real. Real also had a contact who resided in Puerto Rico who could obtain the social security numbers and dates of birth of children who resided in Puerto Rico. Real would then sell the identities of these children to her clients if they wanted to include bogus dependants on their tax returns. Because of the tax laws governing residents of Puerto Rico, residents of Puerto Rico seldom declare children as dependants. Therefore, Real allegedly knew it was unlikely that the IRS would detect that the same child was listed as a dependant on two separate returns.
Real prepared and submitted approximately 29 fraudulent tax returns to the IRS. Altogether, Real prepared and submitted an approximate total of $140,065.00 in false claims for a total approximate tax loss of $123,433.00.
Real faces a sentence of up to 10 years in prison and a fine of $250,000.
The case is part of a continuing investigation by the IRS. Assistant United States Attorney Joseph J. Terz is the prosecutor.
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