Tax preparer in Houston pleads guilty to falsifying tax 2018 tax returns
HOUSTON - A tax service operator has admitted to willfully preparing a false 2018 joint income tax return, announced U.S. Attorney Alamdar S. Hamdani.
As part of her plea, Lynettia Profit admitted that from 2016 to 2019, she operated JNL Tax Services in Houston. She admitted she often placed false education credits and Schedule C items on the returns she prepared, generating larger refunds to which her clients were not entitled.
According to the plea, she would make money by charging preparation fees deducted from refunds paid to clients.
Profit pleaded guilty to information charging her with one count of aiding or assisting in the preparation of a false return.
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Specifically, she admitted to placing two false American Opportunity Tax Credits in the amount of $2,500 each on the joint return as well as $70,743 in false expenses that were listed on Schedule C. This resulted in a tax loss of approximately $22,101.
Profit took responsibility for $336,847 in loss to the IRS and has agreed to pay that amount in restitution.
U.S. District Judge Lee H. Rosenthal will impose sentencing on Jan. 24, 2024. She faces up to three years in prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing. IRS Criminal Investigation conducted the investigation.
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Assistant U.S. Attorneys Brad Gray and Andrew Swartz are prosecuting the case.