Karen Liane Miller, Filing False Claims for Refund, Tennessee 2009

A Nashville, Tennessee, woman, Karen Liane Miller, 61, was sentenced to 18 months in prison for filing false claims for refund, causing a loss of more than $1 million to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney David Rivera for the Middle District of Tennessee.

Miller admitted to knowingly preparing and submitting multiple false federal income tax returns to the IRS on behalf of her friends, family, and herself from about August 2008 until about July 2009. The returns reported false amounts of taxable income on attached Forms 1099-OID and Forms 1099-A that Miller created and fraudulently represented to have been issued by financial institutions.

The returns also reported identical or near-identical false amounts of federal income tax withheld from the fictitious income to generate claims for tax refunds that were significantly higher than what the taxpayers were entitled to receive. Miller filed 48 fraudulent tax returns that falsely claimed more than $19.8 million in refunds. The IRS issued $1,003,238 in refunds for eight of the 48 fraudulent returns.

In addition to the prison term, Miller was ordered to serve two years of supervised release and to pay restitution to the IRS in the amount of $939,835.62.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rivera commended special agents of IRS–Criminal Investigation, who investigated the case and Trial Attorneys Alexander Effendi and Nathan Brooks of the Tax Division and Assistant U.S. Attorney Carrie Daughtrey, who are prosecuting the case.

This case is a reminder of the importance of honesty and integrity in tax filings. The public's trust must be upheld, and those who seek to exploit the system for personal gain will be held accountable.

Mandatory facts: Defendant's real full name is Karen Liane Miller, the exact criminal charges are filing false claims for refund, the city and state are Nashville, Tennessee, the exact date of sentencing is not provided, the sentence is 18 months in prison and two years of supervised release, and the dollar amounts are $1,003,238 in refunds and $939,835.62 in restitution.

Source: https://www.justice.gov/archives/opa/pr/tennessee-woman-sentenced-prison-filing-false-claims-refund