BIRMINGHAM - A federal grand jury today indicted a mother and daughter who ran a tax-preparation business in Sumter County for a conspiracy to defraud the IRS, announced Acting U.S. Attorney Robert O. Posey and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey.
A 20-count indictment filed in U.S. District Court charges KATIE TOMEKO GREEN-HORN, 38, owner of Katie’s Tax Service in York, and her mother, SANDRA LENORA GREEN, 60, who worked at the tax business, with conspiring to defraud the United States between January 2011 and April 2014 by obstructing the IRS in its collection of income taxes.
The defendants repeatedly prepared fraudulent tax returns for clients by claiming false education and residential energy credits, false business losses and inflated business expenses, according to the indictment. The fraudulent deductions boosted refund amounts, thereby increasing KTS’s clients and preparation fees, the indictment says.
It also charges Green-Horn with three counts of making a false return on her own tax forms for the calendar years 2011 through 2013 by not disclosing income from her tax business, which she was legally required to do as its sole proprietor. The indictment charges that Green-Horn knowingly omitted nearly $700,000 in personal income from KTS over those three years.
The indictment further charges Green-Horn with seven counts of assisting in preparing and presenting false returns for clients by including fraudulent credits and deductions on their tax forms.
The indictment charges Green with nine counts of assisting in preparing and presenting false returns for including the fraudulent credits and deductions.
The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for submitting false returns and for assisting in preparing and presenting false returns is three years in prison and a $100,000 fine.
IRS-CI investigated the case, which Assistant U.S. Attorney Melissa Atwood is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Source: U.S. Department of Justice, Office of the United States Attorneys
