Ala. Women Plead Guilty to Tax Fraud
Two women from Montgomery, Ala., face significant jail time after pleading guilty to tax fraud.Rumekia L. Sanders and Felicia Shanta Jackson, both 29, pleaded guilty to one felony count charging them with conspiring to defraud the United States.
According to the plea agreement and information, in early 2005, Sanders and Jackson were employed by a tax preparation business in Montgomery. Following the instructions of the owner of the business, they caused approximately 22 federal income tax returns to be filed with the IRS that falsely claimed refunds that substantially exceeded the actual refund, if any, to which the taxpayer was entitled.
In particular, the returns inflated the taxpayers’ income in order to render the taxpayers eligible for earned income tax credit (or to entitle the taxpayer to a larger earned income tax credit). The business owner paid the defendants approximately $400 to $450 for each return they prepared and filed.
When they are sentenced later this year, Jackson and Sanders each face up to five years in prison, an order of restitution, and a fine of up to $250,000 or, if greater, twice the loss to the IRS.
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Tags: conspiracy to defraud, tax fraud
