North Carolina Tax Preparer Sentenced to Prison for Defrauding IRS | OPA

A North Carolina tax return preparer was sentenced today to 20 months in prison for conspiring to defraud the IRS.

According to court documents and statements made in court, from 2012 through 2017, Andrea Pasley, of Durham, conspired with Karen Jones and Audrey Odom to prepare fraudulent tax returns for clients of Jones and Stone Taxes. Returns prepared by the conspirators claimed false education credits or dependents or manipulated the clients’ income to qualify for larger earned income tax credits. Under the scheme, some clients were charged up to $3,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the conspirators caused a tax loss of approximately $1.2 million.

Jones and Odom also pleaded guilty to conspiracy to defraud the IRS and were sentenced earlier this year to 22 months and 15 months in prison, respectively, for their roles in the conspiracy.

In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered Pasley to serve three years of supervised release and to pay approximately $1,264,493 in restitution to the United States. 

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorneys Todd Ellinwood and Kavitha Bondada of the Tax Division prosecuted the case.