Booming Business in Fraud

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TNT might be a dynamite name for a business—until it blows up in your face. Believe it or not, TNT Taxes is the name of a firm that advertised tax preparation services specializing in individual taxes and ”amendments,” according to a report by the Capital Gazette. But things went kaboom! when the owner of the business was caught filing dozens of fraudulent income tax returns. (Yep, the irony of these stories blows my mind some days.)

The 43-year-old woman, who owned a Maryland tax preparation company, was caught carrying out a false tax refund scheme that bilked the Internal Revenue Service out of more than $330,000. Ultimately, she pleaded guilty to aiding in the preparation of filing false tax returns, for intentionally including false information on tax returns that she prepared on behalf of clients, whom she had solicited with promises of specialized skills in ”amendments.” (Amending the truth, as it turned out.)

In total, she admitted to filing 29 false claims in 2011 that included fudged or inflated numbers around the personal property or real estate taxes of clients, including an undercover federal agent with the IRS Criminal Investigation Division. (Cue any classic clip of the Coyote blowing up himself instead of the Road Runner.) Now she must serve a year plus one day in federal prison, followed by a year of supervised release.

But there is truly nothing comical about committing fraud, which has a nasty habit of backfiring.

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Glen Burnie tax preparer receives prison sentence for preparing false returns,” written by Lauren Loricchio and published by the Capital Gazette on March 2, 2016.

The operator of a Glen Burnie tax preparation company was sentenced Wednesday by a U.S. District Judge to serve a year and a day in prison as part of a plea agreement, for aiding in the preparation of false tax returns.

Christine Little, 43, will serve a year of supervised release following the prison sentence, the U.S. District Attorney’s Office of Maryland said Wednesday. She pleaded guilty in October to aiding in the preparation of false tax returns, and faced a maximum sentence of three years in prison, a fine of no more than $100,000 and a term of supervised release of up to one year, according to electronic court records.

Little, who identified herself as owner of a business called TNT Taxes, admitted that she prepared 29 false tax returns, the U.S. District Attorney’s Office said.


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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.