Winchester Tax Preparer Pleads Guilty to Tax Fraud

LEXINGTON -  A Winchester, Ky., tax return preparer has admitted in federal court that she submitted false individual income tax returns and evaded paying thousands of dollars in federal income taxes.

Virginia Christine Smith, 44, pleaded guilty today to tax fraud in front of U.S. District Judge Danny C. Reeves.

According to her plea agreement, Smith knowingly underreported income on her personal tax returns in 2009, 2010, and 2011.  During that time period, she owned a professional tax return preparation business called Christina’s Bilingual Service, which she operated out of her home in Winchester, Ky.

Smith admitted failing to pay $40,079 in federal taxes.  As part of her guilty plea agreement, Smith pledged to repay that amount to the Internal Revenue Service, plus penalties and interest.

Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Caroline D. Ciraolo, Assistant Attorney General for the Tax Division; and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement.

 The investigation was conducted by the Internal Revenue Service, Criminal Investigation Division.  Assistant U.S. Attorney Neeraj Gupta prosecuted this case on behalf of the federal government.

Smith will appear for sentencing on November 18, 2015.  She faces a maximum of three years in prison.  The Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.