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Tax Evasion Schemes Uncovered in Georgia: Woman Admits to Falsifying Documents and Stealing Over $331,000 in Refunds
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A Macon, Georgia woman has pleaded guilty to a tax fraud scheme that totaled over $3.5 million, including falsifying documents and receiving more than $331,758 in refunds.
The Scheme
Lonnise Janelle Andrews, 47, admitted to creating a fake business with hundreds of non-existent employees and filing false tax returns. She falsified IRS tax forms for herself, her father, and the fake business, including reporting incomes, losses, and withholdings that she knew were not true.
False Documents
Andrews used a tax preparation website to generate fake Forms 1099-MISC and 1099-R, which resulted in the IRS issuing her a $165,245 refund check that she was not entitled to. She also filed false Forms 941 and 7200, claiming that her fake business had 957 employees and requesting credits totaling over $3 million.
The Consequences
However, the business never actually existed and had no employees. The IRS processed one of these requests and sent a refund check in the amount of $25,978.83 to a UPS mailbox set up by Andrews’ father.
Andrews faces a maximum sentence of 13 years in prison and a fine of up to $600,000. She has also agreed to pay restitution for the entirety of tax refunds listed in the indictment, totaling $331,758.
Statement from US Attorney
“This is a clear example of tax fraud and we will continue to work with our law enforcement partners to hold individuals accountable,” said US Attorney Peter D. Leary. “We will not tolerate those who try to cheat the system and take advantage of honest taxpayers.”
Investigation and Prosecution
The case was investigated by the IRS and Assistant US Attorneys Elizabeth Howard and Amy Helmick are prosecuting the case for the government.
Sentencing
Andrews’ sentencing is scheduled for January 4, 2024, and she is not eligible for parole.