News

Actions

Burley business filed 2,500 false tax returns

KIVI-Default-Image_1280x720.png
Posted at 10:54 AM, Feb 23, 2016
and last updated 2016-02-23 14:07:50-05

Cruz “Kelly” Chacon, 42, of Burley, pleaded guilty Monday in United States District Court in Boise to preparing false income tax returns for clients of her business, “Kelly’s Tax Service,” according to U.S. Attorney Wendy Olson.

Chacon pleaded guilty to one count of advising and counseling clients to submit “materially false” federal income tax returns to the IRS, Olson said. According to the plea agreement, the IRS estimates that from 2008 through 2011, Chacon and some of her employees at Kelly’s Tax Service submitted over 2,500 federal falsified income tax returns.

“They did this primarily by claiming tax credits to which their clients were not entitled. Specifically, Chacon and her employees would prepare tax returns that claimed the “child tax credit” and the “additional child tax credit” for taxpayers who did not qualify for these credits. This had the effect of increasing clients’ tax refunds, which helped the defendant to generate business,” Olson stated.

As part of her plea agreement, Chacon has agreed to pay $81,384.00 in restitution.

Sentencing is set for May 9, 2016, before Chief U.S. District Judge B. Lynn Winmill.

“(People should) choose carefully when hiring a tax preparer and avoid tax preparers who claim they can obtain larger refunds than other preparers,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho.

For tips on Choosing a Tax Professional go to www.irs.gov.

The crime of advising, assisting, and counseling in the preparation of a false income tax return punishable by up to three years imprisonment, a $250,000 fine, a term of supervised release of one year, and a $100 special assessment.

The case was investigated by the IRS Criminal Investigations division.