Houston County Woman Sentenced for Filing False Tax Returns on Behalf of Clients

MONTGOMERY, Ala. — A Cowarts, Alabama, woman has been sentenced for aiding and assisting in the preparation and filing of false federal income tax returns on behalf of her clients, announced United States Attorney Thomas Govan for the Middle District of Alabama and Acting Assistant Special Agent in Charge Patrick M. Palmer with IRS Criminal Investigation, Atlanta Field Office.

On November 10, 2026, Markita Latrice Thornton, 40, was sentenced to 33 months in federal prison, followed by one year of supervised release. There is no parole in the federal system.

According to her plea agreement and other court records, Thornton began preparing tax returns for clients at a tax preparation business in Dothan, Alabama, in 2016. As part of her practice, Thornton generally did not require payment at the time services were rendered. Instead, her preparation fees were deducted from clients' tax refunds before the refunds were issued by the Internal Revenue Service (IRS).

In one specific example included in her plea agreement, on January 6, 2022, Thornton prepared and filed a federal income tax return for a client that falsely reported $10,995 in business income from a business that Thornton knew did not exist.

Thornton further admitted that on February 1, 2023, she prepared and filed a false federal income tax return for a client suffering from dementia. That return falsely claimed a dependent, improperly claimed education credits associated with that purported dependent, and included a $4,113 fuel tax credit for an off-highway business for which the client was not eligible. Thornton also falsely reported $12,105 in net profit from a purported repair business that did not exist.

Thornton admitted that she knowingly prepared and filed false federal income tax returns for these clients in an effort to generate refunds greater than those to which the clients were legally entitled. Per court records and statements made in court, the two false returns identified in the plea agreement were representative of only a portion of Thornton's broader criminal conduct and did not encompass all of the false returns she prepared and filed during the course of the scheme.

In addition to the prison sentence, the court ordered Thornton to pay $328,158.34 in restitution to the IRS. As part of her plea agreement, Thornton admitted that her criminal conduct caused an actual tax loss to the government of more than $1.6 million. Thornton also agreed to forfeit $76,783.50, representing proceeds she obtained through the preparation of false federal income tax returns for taxpayers identified during the investigation.

“Tax preparers have a duty to file accurate returns and help preserve the integrity of our tax system,” said U.S. Attorney Govan. “Those who knowingly submit false information to obtain fraudulent refunds will be held accountable. I also encourage taxpayers to carefully review their returns before they are filed. If a tax preparer asks you to sign a blank return, refuses to sign the return as the preparer, or fails to provide you with a copy, those are warning signs that should prompt additional scrutiny.”

“Markita Thornton’s sentence for filing fraudulent returns is an example of the accountability unscrupulous tax preparers can expect,” said Acting Assistant Special Agent in Charge Palmer, IRS Criminal Investigation, Atlanta Field Office. “Many professional tax preparers serve their clients with honesty and integrity. IRS Criminal Investigation special agents work tirelessly to investigate and refer for prosecution those who tarnish the profession’s reputation by defrauding their clients and the U.S. government.”

The Internal Revenue Service Criminal Investigation Division investigated this case, which Assistant U.S. Attorney Megan A. Kirkpatrick prosecuted.