KC Woman Indicted for False Tax Returns
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was indicted by a federal grand jury today for filing fraudulent tax returns for her clients.
Dinette Kay Cadenhead, also known as Kay Taylor, 46, of Kansas City, was charged in a 35-count indictment returned by a federal grand jury in Kansas City, Mo.
According to today’s indictment, Cadenhead owned and operated a car detailing business (Awesome Accessories, LLC, in Raytown, Mo.) and prepared tax returns for clients.
Cadenhead was charged with 29 counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. Cadenhead allegedly prepared federal income tax returns for clients that contained false and fraudulent claims. Cadenhead assisted at least 12 individuals to file at least 29 false and fraudulent income tax returns for the tax years 2008 through 2011, the indictment says. The tax loss associated with those false returns is $109,627, the indictment says, while the aggregate tax loss (including relevant conduct) is $134,237.
Cadenhead allegedly utilized false deductions (for charitable deductions, medical expenses, accounting expenses, attorney expenses, unreimbursed employee expenses and other expenses) and false IRA deductions to increase her clients’ refunds, without the clients’ knowledge. Cadenhead also included other fraudulent entries, the indictment says, including eight false Schedule C reporting net businesses losses, 10 false energy credits and seven fraudulent dependents, all without her clients’ knowledge.
Cadenhead was also charged with one count of theft of public money. According to the indictment, Cadenhead charged her clients a fee between $65 and $600 per return. However, Cadenhead allegedly diverted a portion of the fraudulent refund into her bank account, without the knowledge of her clients, which increased the amount she received for each return. Cadenhead fraudulently received up to $2,600 for preparing a return, the indictment says, and directed over $14,000 into her bank accounts from her clients’ refunds without their knowledge or permission. Cadenhead allegedly stole money that belonged to the United States by taking portions of inflated tax refunds without the knowledge or authorization of the tax payer.
Cadenhead was charged with five counts of aggravated identity theft. Cadenhead allegedly used the name and Social Security numbers of individuals in relation to the theft of public money. According to the indictment, Cadenhead used the name and Social Security numbers of individuals on federal income tax returns in order to fraudulently claim them as dependents of her clients. Cadenhead unlawfully diverted a portion of the inflated refunds to herself, according to the indictment.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.This case is being prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.