Georgia Tax Preparers Sentenced to Prison for Fraudulent Returns

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The owners of a tax preparation service in McDuffie County, Georgia, have been sentenced to prison for filing fraudulent tax returns, resulting in substantial losses to the IRS. Annie Bailey, 67, and her son Tremarcus Bailey, 43, of Thomson, Georgia, pleaded guilty to Conspiracy to Defraud the United States.

Annie Bailey was sentenced to 21 months in prison, while Tremarcus Bailey received a 30-month sentence. Additionally, they were ordered to pay $683,046 in restitution and serve three years of supervised release after completing their prison terms.

The investigation revealed that the Baileys’ tax service, operating since 2000, used fraudulent information to inflate clients’ tax refunds. This illegal activity occurred from 2014 to 2018, resulting in significant losses to the IRS.

U.S. Attorney Jill E. Steinberg emphasized that the Baileys’ actions compromised the U.S. Treasury, and they are being held accountable for their criminal behavior. Demetrius Hardeman, Acting Special Agent in Charge of the Atlanta Field Office of IRS-Criminal Investigation, warned dishonest tax preparers that their fraud would be uncovered and urged taxpayers to review their returns for accuracy.

The case was investigated by Internal Revenue Service Criminal Investigation.