Defendant’s Scheme Causes Over $228,000 in Tax Loss
LAREDO, Texas – In a move that will send shockwaves through the tax preparation industry, Michelle A. Morin has entered a plea of guilty to aiding and assisting in the preparation of false and fraudulent income tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation.
Morin, the owner and operator of Discount Tax Service, a Laredo-based tax preparation business, has admitted to causing more than $228,000 in tax loss to the government. The guilty plea, which was entered today, marks a significant development in a case that has been ongoing since tax years 2007-2010.
According to court documents, Morin aided and assisted in the preparation of fraudulent returns by willfully placing false items on tax returns she prepared for clients, knowing they were not entitled to claim them. These false claims included Schedule A itemized deductions, Schedule C business losses, and Form 5695 residential energy credits, as well as gifts to charity, job expenses, and miscellaneous deductions.
In addition to these false claims, Morin also improperly directed portions of taxpayer refunds into her personal bank account. This brazen move is a clear indication of the defendant’s blatant disregard for the law and her clients’ trust.
As part of her plea, Morin admitted to fraudulently claiming a false Schedule C loss in the amount of $83,184.00 for a non-existent online business on a taxpayer’s 2009 tax return. She also fraudulently reported $2,000 in residential energy credits that she knew the taxpayer was not entitled to claim. Furthermore, Morin improperly directed $2,000 of the false refund to her personal account.
U.S. Magistrate Judge Scott Hacker presided over the plea today, and Morin was permitted to remain on bond pending sentencing, which will be set at a later date before U.S. District Judge George Kazen. At that time, Morin faces up to three years in federal prison and a possible $250,000 fine.
This case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Sanjeev Bhasker. The guilty plea is a significant step towards holding Morin accountable for her actions and ensuring that justice is served.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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