Rockford Tax Preparer Pleads Guilty To Filing False Personal Income Tax Return

ROCKFORD — A Rockford, Ill. woman pleaded guilty today in federal court before U.S. District Judge Philip G. Reinhard to federal income tax fraud. ANNA MARTINEZ, 44, admitted that in 2007 she filed a false income tax return with the United States Internal Revenue Service.

According to the written plea agreement, during calendar years 2006 – 2008 Martinez was the owner and sole proprietor of Community Tax Service, a tax preparation business, in Rockford, Illinois, which was her only source of income. Martinez admitted in the plea agreement that she filed her U.S. Individual Income Tax Return Form 1040 with schedules and attachments for the calendar year 2007, which she verified by written declaration made under the penalties of perjury, and failed to disclose approximately $236,524 of receipts of Community Tax Service for 2007. Martinez also admitted that she failed to report receipts or sales received by Community Tax Services of $68,026 on her individual income tax return for 2006, and $79,594 for 2008, for a total of at least $384,144 for tax years 2006 – 2008, knowing that she failed to pay approximately $72,156 in taxes to the IRS.

Sentencing for Martinez is scheduled for Wednesday, May 7, 2014, at 11:00 a.m. Martinez faces a maximum sentence of up to 3 years in prison, up to one year of supervised release following imprisonment, and a maximum fine of up to $250,000. Martinez must also pay restitution to the Internal Revenue Service and the costs of prosecution. The actual sentence will be determined by the United States District Court, guided by the advisory United States Sentencing Guidelines.

The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-In-Charge of the Chicago Field Office of Internal Revenue Service - Criminal Investigation Division.

The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

Plea Agreement