Charlotte Woman Indicted For Preparing False Tax Returns

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte indicted Elizabeth Pigatt, 46, of Charlotte, on June 20, 2019, on charges of  aiding and assisting in the preparation of fraudulent tax returns for her client and filing false tax returns for herself, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. 

Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) joins U.S. Attorney Murray in making today’s announcement.

According to allegations contained in the indictment, beginning in at least 2012 and continuing through 2016, the defendant owned and operated Pigatt Taxes Quick, a tax return preparation business located in Charlotte.  The indictment alleges that Pigatt prepared income tax returns for clients that claimed false education credits, false Premium Tax Credits, and false Schedule C businesses to inflate refunds paid by the IRS.  In addition to filing fraudulent income tax returns for her clients, Pigatt falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2013, 2014, and 2015, and in her 2012 through 2015 tax returns, Pigatt also falsely claimed education credits and the incorrect filing status. 

According to allegations in the indictment, Pigatt prepared or caused to be prepared more than 430 tax returns for tax years 2011 through 2015 that claimed total refunds of more than $2 million. Pigatt allegedly received at least $95,000 in fees from her clients which were taken directly from her clients’ refunds.  In some cases, the indictment alleges that Pigatt’s clients were unaware of how much they were being charged, which was frequently between $250 and $500. 

As alleged in the indictment, Pigatt regularly failed to provide her clients with copies of their prepared and filed tax returns.  Some clients received correspondence from the IRS after their taxes were filed questioning items on the tax returns. The indictment alleges that Pigatt refused to assist the clients with questions from the IRS.

The indictment further alleges that Pigatt also prepared a false 2015 income tax return for an undercover IRS agent, which included false education credits. 

Pigatt faces a maximum possible sentence of three years in prison on each count, as well as a period of supervised release, restitution, and monetary penalties.

The details contained in this indictment are allegations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

IRS-CI is leading the investigation.  The U.S. Attorney’s Office in Charlotte is in charge of the prosecution.