Employees of a North Carolina Tax Return Preparation Business Plead Guilty to Preparing Fraudulent Tax Return
WASHINGTON - Two Winston-Salem, North Carolina, tax return preparers pleaded guilty today to aiding in the preparation of a false tax return for an Internal Revenue Service (IRS) undercover agent, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G. T. Martin of the Middle District of North Carolina.
According to documents and information provided to the court, Kristyn Dion Daney and Rakeem Lenell Scales worked at a tax return preparation businesses named Fast Tax of Winston-Salem Inc. in Winston-Salem. Fast Tax was owned by Shannon DeWayne Patterson, who pleaded guilty to aiding in the preparation of a false tax return last November, and two other individuals.
As part of their pleas, Scales and Daney admitted that in March 2015 they assisted in preparing a false tax return for an IRS undercover agent. They further admitted that at the beginning of the 2014 tax filing season, they were instructed at training sessions held by one of the Fast Tax co-owners to manipulate the information on clients’ returns to maximize tax refunds.
In total, Daney admitted to aiding in the preparation of approximately 193 false tax returns, which claimed approximately $495,984.04 in fraudulent tax refunds. Scales admitted to aiding in the preparation of approximately 29 false tax returns, which claimed approximately $74,535.20 in fraudulent tax refunds.
U.S. District Judge Loretta C. Biggs scheduled sentencing for Sept. 11. Each defendant faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Robert J. Boudreau and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.