Bastrop Tax Pro Swindled IRS Out of $104K

MONROE, La. – Stella Marie Dunlap, 37, of Bastrop, Louisiana, isn’t just facing a slap on the wrist; she’s staring down the barrel of federal prison time. The former tax preparer pleaded guilty Tuesday to a single count of aiding and subscribing a false tax return, a scheme that cost the Internal Revenue Service over $104,401.

According to court documents, Dunlap, while employed at Faster Tax Services in Bastrop, concocted a brazen fraud during the 2010 and 2011 tax seasons. She fabricated W-2 income information from companies that existed only on paper, then used this bogus data to falsely inflate Earned Income Tax Credit withholdings. The result? Illegitimate refunds totaling $104,401 were issued to unsuspecting taxpayers – and lining Dunlap’s pockets.

It wasn’t a victimless crime. While the IRS absorbed the bulk of the financial loss, Dunlap wasn’t simply motivated by greed; she actively solicited kickbacks from some of the very customers she defrauded, turning them into willing accomplices in her scheme. The details revealed a calculated effort to exploit the tax system for personal gain.

U.S. Magistrate Judge Karen L. Hayes accepted Dunlap’s conditional guilty plea, but final acceptance rests with U.S. District Judge Robert G. James. If James accepts the plea, Dunlap faces a harsh sentence: up to three years behind bars, followed by one year of supervised release. She could also be slapped with a $250,000 fine and ordered to pay full restitution for the stolen funds.

The investigation was spearheaded by the IRS – Criminal Investigations division, who painstakingly untangled the web of false returns and traced the fraudulent funds. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case, determined to hold Dunlap accountable for her actions. A sentencing date has been set for June 15, 2015, giving Dunlap time to consider the consequences of her choices.

This case serves as a stark reminder that manipulating the tax system isn’t a victimless crime. The IRS is actively cracking down on fraudulent preparers, and those who attempt to game the system will face serious repercussions. For Dunlap, that reckoning is quickly approaching.