Lutricia S. Feast, Tax Return Fraud, Louisiana 2013

Lafayette tax preparer Lutricia S. Feast, 52, of Youngsville, La., was sentenced to 24 months in prison for preparing false tax returns for herself and her clients. Feast was sentenced by U.S. District Judge Elizabeth Foote to 24 months in prison and one year of supervised release.

According to evidence presented at the guilty plea on November 25, 2013, Feast was a tax preparer in Lafayette Parish from 2001 to 2009. From 2006 to 2009, Feast admitted to only reporting a fraction of her income to the IRS. In one instance on her 2008 tax return, she reported her income as $14,400, when she actually earned $280,170. The defendant admitted during the guilty plea that between 2006 and 2009, her actual income was $830,986.

Feast also admitted that she owes $287,860 in unpaid taxes. She filed false information on 22 tax returns in 2009 in order to provide her clients with refunds to which they were not entitled. The false returns caused the IRS to issue $96,915 in refunds that were not owed.

“Tax preparers who file fraudulent tax returns by adding fictitious expenses, false deductions and unallowable credits to a taxpayer’s return are taking advantage of the system,” stated U.S. Attorney Stephanie A. Finley.

Feast worked as an income tax preparer where she held herself out to be an expert in the field of tax preparation. She manipulated the income and expenses of unsuspecting clients in order to increase their refund. By doing this, Feast was able to generate a larger clientele thus increasing her income — income that she failed to report on her own personal income tax return.

Feast was ordered to pay $382,582 in restitution. The IRS conducted the investigation, and Assistant U.S. Attorney James T. McManus prosecuted the case. The U.S. Attorney’s office stands ready to assist the IRS during their investigation and will hold these tax preparers accountable for receiving tax credits that they are not entitled to receive.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. Taxpayers are advised to find a reputable tax preparer with a sound reputation that will prepare an accurate tax return. When you sign your tax return, you are agreeing, under penalty of perjury, that the return is correct.

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