Franklin, Tennessee Tax Preparer Pleads guilty
Johnnie E. Nevils, 55, a tax return preparer from Franklin, Tennessee, pleaded guilty yesterday before U.S. District Judge Aleta A. Trauger, to one count of aiding and assisting in the preparation of a false income tax return, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee. A one count information was filed against Nevils on April 28, 2010. Nevils faces a maximum sentence of three years in prison and a fine of $40,000. Sentencing is set for September 24, 2010.
According to court documents, Nevils admitted that while she worked as a return preparer in 2007 and 2008, she prepared tax returns for others that were materially false, which then were filed with the Internal Revenue Service (IRS). The false returns included a combination of false and fictitious Schedule A Itemized Deductions,including charitable gifts, and medical and job expenses and education credits. The returns also included false and fictitious Schedule C Business losses and inflated wages, which increased the earned income tax credit, resulting in her clients claiming fraudulent tax refunds. Nevils’ admitted that her clients did not provide her with the false information contained on the returns. Nevils also admitted that she used her employer’s Electronic Filing Identification Number to submit the false returns electronically to the IRS from her personal computer. As part of her plea, Nevils agreed that her actions resulted in a tax loss to the government of $90,011.
“Disreputable tax preparers who prey on vulnerable individuals by promising unreasonable and illegal tax returns on income are doing a disservice to honest and law abiding taxpayers and their illegal activities will be prosecuted diligently by the United States Attorney’s Office,” said United States Attorney Jerry E. Martin.
“Return preparer fraud is like a contagious disease. It affects not only the preparer, but the individuals who have filed false information with Internal Revenue Service," said Christopher R. Pikelis, Special Agent in Charge, IRS-Criminal Investigation-Nashville Field Office. “IRS Criminal Investigation stands ready to investigate anyone who would put a taxpayer at risk for a quick profit, and we take the matter of protecting taxpayer money very seriously,” said Pikelis.
This investigation was conducted by IRS Criminal Investigation. The United States was represented by Assistant United States Attorney John K. Webb and Department of Justice, Tax Division, Trial Attorneys Michael Boteler and Rebecca Perlmutter.
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