NEWS RELEASE
UNITED STATES ATTORNEY'S OFFICE
WESTERN DISTRICT OF VIRGINIA

John L. Brownlee
United States Attorney
Heidi Coy
Public Affairs Specialist
BB&T Building
310 1st Street, S.W., Room 906
Roanoke, Virginia 24011
(540) 857-2250
FAX (540) 857-2180

March 8, 2007

WINCHESTER WOMAN INDICTED FOR ASSISTING IN THE PREPARATION OF FALSE TAX RETURNS

The former employee of a tax preparation service in Winchester was indicted by a federal Grand Jury for preparing fraudulent tax returns, United States Attorney John L. Brownlee and Charles Pine, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, Alexandria Field Office, announced today.

The thirteen-count indictment, returned today by a federal grand jury sitting in Roanoke, charged Katrina Stine-Hanson, 46, of Winchester, Virginia, with Aiding and Assisting the Preparation of Fraudulent Income Tax Returns. It is alleged that Stine-Hanson, a return preparer, engaged in a scheme to obtain fraudulent refunds for clients by falsifying itemized deductions on their U.S. Individual Income Tax Returns, Forms 1040.

United States Attorney John Brownlee stated that, “Income tax preparers are responsible for ensuring that their clients’ income taxes are accurately and properly reported on their returns. Preparing false tax returns is a federal crime and those who knowingly attempt to cheat the government by claiming false deductions will be prosecuted and punished.”

According to the indictment, between February 2001 and March 2002, Stine-Hanson prepared false federal income tax returns for taxpayers which resulted in substantially greater refunds than they were entitled to. The fraudulent income tax returns contained inflated or fabricated itemized deductions such as charitable contributions, job expenses, and other miscellaneous expenses to which the taxpayers were not in fact entitled to claim as deductions.

The Internal Revenue Service urges taxpayers to watch out for return preparers claiming that they can get substantially greater refunds than in previous years.

If convicted on all counts, the maximum penalty faced by the defendant is 39 years in prison and a fine of $3,250,000.

A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.