Earlene L. Clancy, Aiding False Tax Returns, PA 2024

PITTSBURGH, PA – A Pittsburgh woman traded in honest work for a federal indictment, admitting today to systematically falsifying tax returns for Cititax Refund Company clients. Earlene L. Clancy, 39, of Allegheny County, pleaded guilty to one count of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, a charge that could land her behind bars for years.

The confession came before United States District Judge Nora Barry Fischer, where Clancy admitted to crafting hundreds of bogus returns between 2010 and 2016 while employed as a preparer at the Pittsburgh Cititax location. The scheme revolved around fabricated Schedule C information – used to report business profits or losses – and the subsequent fraudulent requests for Earned Income Tax Credit (EITC) refunds.

Federal prosecutors detailed how Clancy’s actions resulted in taxpayers claiming hundreds of thousands of dollars in refunds they weren’t entitled to. The scale of the operation suggests a calculated effort to exploit the tax system for personal gain, and likely, to boost Cititax’s bottom line through inflated refund amounts. The Department of Justice, through U.S. Attorney Scott W. Brady, made no mention of potential charges against the company itself.

Judge Fischer has scheduled Clancy’s sentencing for October 31, 2019, at 11 a.m. She faces a maximum sentence of three years imprisonment and a hefty fine of $250,000.00. However, the final sentence will be determined based on the severity of the offenses and Clancy’s prior criminal record, if any, according to federal sentencing guidelines.

Assistant United States Attorney Gregory C. Melucci is spearheading the prosecution. The case was built on an investigation conducted by the Internal Revenue Service-Criminal Investigations (IRS-CI), a unit dedicated to uncovering tax-related fraud and ensuring compliance with federal tax laws. The IRS-CI’s work has become increasingly vital as tax fraud schemes become more sophisticated.

Grimy Times will continue to follow this case as it moves toward sentencing. The outcome will serve as a stark reminder that manipulating the tax system carries significant consequences. This isn’t a victimless crime; it robs the government of crucial funds needed for public services and undermines the integrity of the entire system. The investigation highlights the IRS’s continued focus on identifying and prosecuting those who exploit the nation’s tax laws.

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