Former Tax Preparer Indicted for Defrauding the Government of Nearly $130,000

Memphis, TN – A former tax preparer has been indicted for filing materially false federal income tax returns which defrauded the government of nearly $130,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Tracey D. Montaño, Special Agent in Charge of IRS-Criminal Investigation, announced the indictment today.

According to the indictment, Latoya Garrett, 41, of Memphis, Tennessee, was employed as a tax preparer at the Bryan Tax Service, Global Taxes and Tax Bank. Garrett filed tax returns on behalf of the three aforementioned tax services for tax years 2010 and 2011.

An investigation conducted by the Internal Revenue Service – Criminal Investigation (IRS-CI) discovered that many of the returns filed by Garrett were materially false. Specifically, false Schedule C income and expenses, false education credits, and falsely claimed dependents were all claimed on the returns of 13 taxpayers — some of which had multiple returns — filed for tax years 2010 and 2011. The taxpayers denied providing the said information to Garrett; she was identified as the tax preparer that prepared and filed said returns with the IRS.

The total loss associated with Garrett’s illicit acts is $129,744.00.

On Wednesday, February 17, 2016, Garrett was indicted on 18 counts of aiding and assisting in filing false documents, claims or returns with IRS.

If convicted, she faces up to three years imprisonment on each count. She also faces a fine of up to $100,000 on each count.

This case is being investigated by the IRS-CI.

Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on the government’s behalf.

The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.