Chipley “Sovereign Citizen” Convicted At Trial Of $3.4 Million Tax Fraud Scheme, Filing A False Lien, And Absconding While On Bond
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Elizabeth M. Jordan (52), and her daughter, Dolores A. Youmans (30), both of Jacksonville, have pleaded guilty to aiding and assisting others with the filing of fraudulent tax returns. Each faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.
According to the plea agreements, Jordan had been working as a tax preparer since approximately 1990. Since 2011, she was the owner and operator of a business that offered tax return preparation services. At the business, Jordan, Youmans, and others prepared individual income tax returns, with accompanying forms and schedules, on behalf of clients. In doing so, they reported false information, including false deductions, false claims for education and other credits, and false claims of business expenses. These false representations reduced the amount owed by, or increased the amount refunded to, the taxpayers.
Jordan pleaded guilty to preparing and filing a fraudulent 2011 tax return in which she represented that the taxpayer owned a business with no income and $34,755 in expenses. She also represented on the return that the taxpayer had $4,000 in education expenses and was entitled to an education credit of $1,000. In fact, the taxpayer was a wage-earning employee of a corporation who had not operated a business in 2011, and had not incurred any education expenses that year.
After Jordan filed the return, the IRS issued a refund of $10,021 to the taxpayer. In the absence of the false statements and other improperly claimed deductions and credits, the taxpayer would have been entitled to a refund of $533. The tax loss to the IRS was $9,488.
Youmans pleaded guilty to preparing and filing a fraudulent 2012 tax return. On the return, she represented that the taxpayer had a business with no income and $36,895 in expenses. She also represented on the return that the taxpayer had $4,000 in education expenses and was entitled to an education credit of $1,500. In fact, the taxpayer was a wage-earning employee of a corporation, had not operated a business in 2012, and did not incur any education expenses during that year. She further represented that the taxpayer had bought 5,255 gallons of gasoline and was entitled to a $962 fuel tax credit. Although the taxpayer was a truck driver, the employer had paid for all of the fuel and the taxpayer was not entitled to the credit. After Youmans filed the return, the IRS issued a refund to the taxpayer of $16,469. In the absence of the false statements and other improperly claimed deductions and credits, the taxpayer would have been entitled to a refund of $5,182. The tax loss to the IRS was $11,287.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.