Woman Pleads Guilty To Preparing False Income Tax Return

HOUSTON – Shirley M. Carrington has pleaded guilty to one count of willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, United States Attorney Kenneth Magidson announced today.

According to the written plea agreement filed in the record of the case, Carrington admitted she wilfully prepared a false income tax return for a husband and wife that included a claim for losses from an alleged janitorial service sole proprietorship that the taxpayers did not have. Carrington also admitted the return she prepared for the couple also claimed a false deduction for unreimbursed employee expenses and a false deduction for other miscellaneous deductions. Carrington stipulated the tax loss to the United States on the false tax return for which she was convicted was $10,962. 

Carrington further admitted in the plea agreement that the eight tax returns underlying the eight counts in the indictment in the case all claimed false losses from alleged janitorial sole proprietorships that none of the taxpayers had. Her relevant conduct, which is the total tax loss in the case, for purposes of sentencing was $199,472.00. 

U.S. District Judge Vanessa Gilmore, who accepted the plea today, has set sentencing for April 1, 2013, at which time she faces up to three years in prison and a $250,000 fine.
 
This matter was investigated by Internal Revenue Service - Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.