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Tax Preparer Sentenced for False Tax Returns
LAURA A. DIGGS, a 41-year-old resident of Paulina, Louisiana, has been sentenced to five years of probation with the first six months to be served in home confinement for making false statements on tax returns and assisting in the preparation of false tax documents. U.S. District Judge Carl J. Barbier imposed the sentence on DIGGS, who was also ordered to pay a $6,000 fine and a $200 special assessment, according to U.S. Attorney Dana J. Boente.
According to court documents, DIGGS was engaged in the business of preparing and filing income tax returns at her business, Diggs Tax Service, which was located in Luling, Louisiana. From 2007 through 2009, DIGGS prepared and filed false income tax returns for her customers, which contained false Schedule A deductions, resulting in inflated refunds for her customers to which they were not entitled.
Additionally, DIGGS signed her own taxes that falsely under-reported the business income she had received. In total, DIGGS failed to report approximately $766,761 in gross income, to which there is a total tax liability of $210,233.
DIGGS has made full restitution to the Internal Revenue Service of $343,526.00. The case was being investigated by agents from the Internal Revenue Service Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Matt Chester.
The investigation revealed that DIGGS’s actions were not limited to her business. From 2003 through the present, she prepared and filed false income tax returns for her customers, resulting in inflated refunds for her customers. The investigation also found that DIGGS failed to report approximately $766,761 in gross income, resulting in a total tax liability of $210,233.
U.S. Attorney Dana J. Boente stated, ‘The sentence handed down today is a reminder that tax evasion and false tax returns will not be tolerated. The Internal Revenue Service will continue to work tirelessly to identify and prosecute individuals who engage in such activities.’
Assistant U.S. Attorney Matt Chester added, ‘Laura A. Diggs’s actions were a clear abuse of trust. She used her position as a tax preparer to defraud her customers and evade taxes. Today’s sentence is a significant step towards holding her accountable for her actions.’
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Key Facts
- State: Louisiana
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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