As we embark on the holiday season and head into the New Year, Demetrius Hardeman, Special Agent in Charge of Internal Revenue Service Criminal Investigation, has a warning for all. Choose your tax return preparer carefully!
Investigators uncovered a multi-state unemployment benefit scheme created by tax preparer Jessica Crawford. Crawford was caught in a federal investigation into pandemic-related fraud for filing fake claims for unemployment benefits. As their tax return preparer, she created the fake businesses necessary to steal money meant for people affected by the economic hardships of the COVID-19 pandemic.
To confirm the fraudulent contributions that she willingly offered, IRS agents conducted an undercover operation at Crawford’s business in April of 2022. When the undercover agent met Crawford to have his supposed tax returns prepared, Crawford asked if the agent did anything on the side. At first the agent responded no, but Crawford insisted, explaining that expenses could be deducted if he did anything on the side. Finally, the agent mentioned he mowed an aunt’s lawn sometimes. “Sometimes” was good enough for Crawford! With that piece of information, Crawford created a Schedule C for a landscaping business that wasn’t making a profit, which then allowed for an Earned Income Tax Credit (EITC), a Child Tax Credit (CTC), and a Qualified Business Income (QBI) deduction as part of the agent’s supposed tax returns. As a result, the agent’s return claimed a fraudulent federal income tax refund of $12,359.
A review of her past tax returns showed over $3 million in fraudulent claims. In exchange for her scheme, Crawford received a percentage of the ill-gotten gains. On November 26, 2024, Crawford pled guilty to income tax fraud.
Great job by the IRS Criminal Investigation.
Today’s Fraud of The Day is based on article “Atlanta tax preparer pleads guilty to $3M fraud scheme” published by FOX 5 Atlanta Digital Team on November 26, 2024.
An Athens tax preparer has pleaded guilty to filing over $3 million in fraudulent tax returns, potentially facing up to 30 years in federal prison.
Jessica Crawford, 33, owner of Crawford Tax Services, admitted to wire fraud and aiding in the preparation of false tax returns during her court appearance on Nov. 22 before U.S. District Judge Tilman E. “Tripp” Self, III. Sentencing is scheduled for March 19, 2025, where she could also face a $1 million fine and five years of supervised release.