Montgomery, AL — Nicole Coleman, 34, of Montgomery, Alabama, is headed to federal prison after being sentenced to 36 months for filing fraudulent federal income tax returns. On Wednesday, October 26, 2016, Chief United States District Judge W. Keith Watkins handed down the sentence after Coleman pleaded guilty to making false statements on tax filings.
Coleman was the owner and operator of Community Tax Associates, LLC, a tax preparation business based in Montgomery. Through the company, she prepared and filed federal income tax returns for clients—and for herself—knowingly inserting false information to inflate refund amounts. Her scam wasn’t subtle: fabricate deductions, invent dependents, and boost credits, all to trigger bigger government payouts.
From 2014 to 2015, Coleman’s scheme raked in an estimated $1,654,781.03 in fraudulent refunds from the U.S. Treasury. She didn’t just profit from the fraud—she weaponized it. By taking a cut of every bloated refund she secured, Coleman turned the tax system into her own personal cash machine, feeding off the trust of low-income filers counting on her expertise.
The fallout doesn’t just land on the federal ledger. “By filing these fraudulent tax returns, the defendant stole taxpayers’ hard earned money,” said United States Attorney George L. Beck, Jr. “In doing so, she harmed her clients, who trusted her to prepare and file their income tax returns, as well as all citizens who honestly filed their income tax returns. I am proud of the Internal Revenue Service’s and this office’s efforts to stamp out tax fraud like this.”
The case was investigated by the Internal Revenue Service’s Criminal Investigations Division, which has been cracking down on fraudulent preparers who exploit vulnerable communities during tax season. These “ghost preparers” often disappear after filing, leaving clients on the hook for penalties and audits—while the criminals pocket the profits.
Assistant United States Attorney Jonathan S. Ross prosecuted the case, underscoring the DOJ’s ongoing push to hold corrupt tax professionals accountable. Coleman’s conviction sends a message: stealing from the public fisc, under the guise of financial help, carries serious time. She’ll now spend three years behind bars—paid for by the system she defrauded.
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Key Facts
- State: Alabama
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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