Alabama Woman Gets Six Years for Filing False Federal Tax Returns

Filing false federal tax returns is the same as stealing money from the federal treasury. As a tax preparer, this woman in Alabama did just that.

An Alabama woman was sentenced to 72 months in prison for filing false federal tax returns.

Laquanda Gilmore Garrott, 39, of Montgomery, Alabama, was also ordered to pay $56,897.00 in restitution.

Filing False Federal Tax Returns

According to trial evidence, Garrott operated a tax preparation business. The government proved that Garrott knowingly put false information on multiple tax returns in order to increase refunds for clients, which also increased her own tax preparation fees.

In one case, Garrott falsely claimed that a client lost more than $30,000 on a lawn care company even though she knew her client had no such business. By including the false business losses, Garrott was able to offset the client’s taxable income and make the client eligible for the Earned Income Tax Credit.

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The Stance of the IRS

“Ms. Garrott stole money from the federal treasury when she filed false federal income tax returns, a crime that affects all of us,” U.S. Attorney Louis V. Franklin Sr. said in a statement.

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Florida Man Sentenced To Nine Months In Prison For Tax Evasion

This real estate investor has been found guilty of tax evasion after having failed to report more than $1 million in taxable income.

A Florida man was sentenced in Connecticut to nine months in prison for tax evasion.

According to court records, Anthony A. Valentino, of Palm City, Florida, is a real estate investor who owns property in Connecticut and New York, including a 100-unit apartment complex in Naugatuck, Connecticut.

What Led to the Tax Evasion

From 2011 to 2013, Valentino deposited more than $1.1 million of rental receipts, paid in cash or checks, into his personal bank accounts in Connecticut and New York and failed to report the receipts on his personal and partnership federal tax returns.

For the 2011 through 2013 tax years, Valentino failed to report more than $1 million in taxable income on his tax returns, and only reported $42,815 in taxable income. As a result, he evaded payment of $302,449 in income taxes.

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Other Illegal Practices Involved

The government’s investigation also revealed that, in 2013, Valentino made or caused to be made 27 cash deposits totaling $247,100. Many of the deposits, which ranged in amounts from $7,000 to $9,900, were made on the same day at different times, or on consecutive days — an illegal process known as “structuring” that is intended to avoid currency transaction reports.

Valentino pleaded guilty to tax evasion. He has paid $302,339 in restitution but still owes approximately $333,000 in tax penalties and interest. He also has forfeited $100,000.

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