Bastrop Tax Preparer Admits to $104K Fraud

MONROE, La. – Stella Marie Dunlap, 37, of Bastrop, Louisiana, is facing federal prison time after admitting to a brazen scheme to defraud the Internal Revenue Service. The former tax preparer pleaded guilty Tuesday to one count of aiding and subscribing a false tax return, a crime that cost taxpayers over $104,000.

According to court documents, Dunlap, while employed at Faster Tax Services in Bastrop, filed fraudulent Forms 1040 during the 2010 and 2011 tax seasons. The scheme revolved around fabricating W-2 income information from companies that didn’t exist. This bogus data was then used to illegally inflate Earned Income Tax Credit withholdings, triggering unwarranted refunds from the IRS.

The total amount of fraudulent refunds issued as a result of Dunlap’s actions reached a staggering $104,401. But the greed didn’t stop there. Prosecutors revealed Dunlap wasn’t simply motivated by the thrill of the con; she actively solicited and received kickbacks from some of the customers she defrauded, profiting directly from her criminal activity.

U.S. Magistrate Judge Karen L. Hayes accepted Dunlap’s conditional guilty plea, which now awaits final acceptance by U.S. District Judge Robert G. James. If accepted, Dunlap could face a maximum sentence of three years in prison, followed by one year of supervised release. The potential financial penalties are also significant: a $250,000 fine and an order for full restitution to the IRS.

The investigation was spearheaded by the Internal Revenue Service – Criminal Investigations, highlighting the agency’s ongoing commitment to rooting out tax fraud. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case, ensuring that those who abuse the tax system are held accountable.

A sentencing date has been set for June 15, 2015. Grimy Times will continue to follow this case and provide updates as they become available. This case serves as a stark reminder that manipulating the federal tax system carries severe consequences, and no one – not even those entrusted with preparing taxes – is above the law.