Clearfield County Tax Preparer Pleads Guilty in Federal Court

PITTSBURGH - A Clearfield County woman waived indictment and pleaded guilty in federal court to a charge of aiding and assisting in the preparation or filing of a false income tax return, United States Attorney Scott W. Brady announced today.

Kathy Billotte, age 59, of Frenchville, Pennsylvania, pleaded guilty before Senior United States District Judge Arthur J. Schwab.

In connection with the guilty plea, the court was advised that Billotte was a tax return preparer and operated a tax return preparation business known as "K B Tax Services" in Clearfield County. She falsified annual income tax returns prepared for at least 15 individuals during the period 2013 through 2017, ensuring the individuals received tax refunds to which they were not entitled. Specifically related to the offense to which she pleaded guilty, Billotte prepared and filed on February 26, 2016, a 2015 federal income tax return for a taxpayer identified as "T.G." on which she falsely and fraudulently reported that he/she operated a private business and incurred business expenses, as well as inflated unreimbursed business expenses and charitable donations. The total tax loss to the Internal Revenue Service or all 15 clients was $196,105.

Judge Schwab scheduled sentencing for November 18, 2020, at 11:30 a.m. The law provides for a total sentence of not more than three years in prison, a fine not to exceed $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Billotte was released on bond pending sentencing in the case.

Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.

The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Billotte.