Tax Preparer Gets Jail Time

     An Alabama woman has been sentenced to 18 months in prison for her involvement in a fraudulent tax

 return perpetration scheme. Judge Mark Fuller of the Middle District of Alabama sentenced Chiquita Q.

 Broadnax for the scheme, the Justice Department and the Internal Revenue Service (IRS) announced.

     Broadnax worked as a tax return preparer at a tax return preparation business, known as Flash Tax. She

 worked there from December 2004 through January 2007. While she worked at Flash Tax, Broadnax

 prepared and filed at least 900 tax returns, with most of the returns containing false information in order to

 get higher tax returns, which she kept and her clients did not receive.

     Her boss, James E. Moss trained Broadnax to prepare false tax returns in order to obtain higher tax

 refunds for Flash Tax clients by overstating or understating specific numbers and sometimes even completely

 making up false numbers to the tax return. Moss was convicted in early December for being the ring leader

 of the fraudulent tax return perpetration scheme. Broadnax's co-worker Avada L. Jenkins was also

 convicted. Lambert has plead guilty to the crime of preparing false tax refund claims. Indictments have been

 filed against Flash Tax alleged co-conspirators Melinda M. Lambert and Lutoyua N. Thomson. Each

 defendant faced a maximum jail term of 86 years for the multiple crimes.

     Fraudulent tax returns is nothing new. Tax preparers and and individuals alike get caught every year doing

 it. Individuals think that they can get away with preparing false returns if they just slightly inflate or deflate

 their tax returns. It is very important to check who your tax preparer is, and make sure they are reliable and

 trustworthy, before paying them to do your returns.

     So how do people cheat on their taxes? Most cheating is from deliberate under reporting of income to

 achieve higher tax returns. This is tax evasion, which is the most common type of tax crime. crime. A

 government study found the most under reporting of income was by self-employed restaurateurs, clothing

 store owners, and car dealers. . Telemarketers and salespeople came in next, followed by doctors, lawyers,

 accountants, and hairdressers.

     What happens if your caught cheating? Most tax crimes are caught through an audit. If you are caught in a

 tax lie by an auditor, she can either slap you with a penalty or refer your case to the IRS’s criminal

 investigation division (CID). In the vast majority of cases, the auditor won’t call in the CID. Auditors are

 trained to look for signs of tax fraud. . Using a false Social Security number, keeping two sets of financial

 books, or claiming a blind spouse as a dependent when you are single are all blatant examples of tax fraud.