A Detroit tax preparer has pleaded guilty to preparing false tax returns, causing a significant loss to the Internal Revenue Service (IRS).
Daneilla Allen, co-owner of All Star Tax Services, a return preparation business with locations in Michigan and Ohio, admitted to preparing and filing false tax returns for clients from 2014 through 2018.
The false tax returns contained fictitious business income and expenses, as well as false itemized deductions and education credits, in an effort to generate larger refunds than her clients were entitled to receive.
Even after IRS special agents informed Allen that she was the subject of a criminal investigation, she continued to prepare false returns for clients in 2020 and 2021.
Allen’s actions resulted in a total tax loss to the IRS of more than $815,000.
She faces a maximum penalty of three years in prison for assisting the filing of a false tax return, as well as a period of supervised release, restitution, and monetary penalties.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Allen is scheduled to be sentenced on September 7.
The case is being investigated by the IRS-Criminal Investigation, and trial attorneys Jeffrey A. McLellan and Sam Bean of the Tax Division are prosecuting the case.
Related Federal Cases
- Marko Nikoli Sentenced to 27 Months for Bank Fraud, Eastlake OH, 2023 · Michigan
- Mark O. Wittenmyer, 52-Count Investment Fraud, OH, 2024 · Texas
- Larry Darnell Frazier, Store Credit Card Fraud, Detroit MI, 2023 · Michigan
- Nedal Mark Hasan, Health Care Fraud, Cleveland OH, 2023 · Texas
- Joey Westbrook Sentenced to 36 Months for Credit Card Fraud, Columb… · Michigan
Key Facts
- State: Michigan
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News