JACKSONVILLE, Fla. – A woman and her daughter who pleaded guilty to aiding and assisting others with the filing of fraudulent tax returns last year were sentenced Monday by U.S. District Judge Brian Davis.
Elizabeth Jordan, 52, was sentenced to 21 months in federal prison and her daughter, Dolores Youmans, received five years probation. In addition, each was ordered to pay restitution to the Internal Revenue Service -- totaling $176,397 for Jordan and $96,769 for Youmans.
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Federal prosecutors said Jordan had been working as a tax preparer since around 1990 and owned and operated a tax preparation service since 2011.
Officials said that at the business, Jordan, Youmans and others prepared individual income tax returns with accompanying forms and schedules on behalf of clients.
In doing so, they reported false information, including false deductions, false claims for education and other credits, and false claims of business expenses, officials said. The false representations reduced the amount owed by, or increased the amount refunded to, the taxpayers.
In December, Jordan pleaded guilty to preparing and filing a fraudulent 2011 tax return in which she represented that the taxpayer owned a business with no income and $34,755 in expenses.
Jordan also represented on the return that the taxpayer had $4,000 in education expenses and was entitled to an education credit of $1,000. Officials said the taxpayer was a wage-earning employee of a corporation who had not operated a business in 2011 and had not incurred any education expenses that year.
The IRS issued a refund of $10,021 to the taxpayer after Jordan filed the return, officials said.
In the absence of the false statements and other improperly claimed deductions and credits, the taxpayer would have been entitled to a refund of $533, officials said. The tax loss to the IRS was $9,488.
Officials said Youmans pleaded guilty to preparing and filing a fraudulent 2012 tax return. On the return, she represented that the taxpayer had a business with no income and $36,895 in expenses.
Youmans also represented on the return that the taxpayer had $4,000 in education expenses and was entitled to an education credit of $1,500, officials said. The taxpayer was a wage-earning employee of a corporation, had not operated a business in 2012 and did not incur any education expenses during that year.
Officials said Youmans further represented that the taxpayer had bought 5,255 gallons of gasoline and was entitled to a $962 fuel tax credit. Although the taxpayer was a truck driver, the employer had paid for all of the fuel and the taxpayer was not entitled to the credit.
The IRS issued a refund to the taxpayer of $16,469 after Youmans filed the return, officials said.
In the absence of the false statements and other improperly claimed deductions and credits, the taxpayer would have been entitled to a refund of $5,182, officials said. The tax loss to the IRS was $11,287.