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Tax Scammer Pleads Guilty in Mississippi
A former resident of Durant, Mississippi, has pleaded guilty to preparing and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Hurst, Jr. of the Southern District of Mississippi.
According to court documents and information provided in court, Teresa C. Chism operated tax return preparation businesses in Mississippi named Mo’ Money, MoneyCo USA, and Lady T Taxes between 2005 and 2015. Chism falsified her clients’ returns in different ways in order to increase their tax refunds, including reporting false wages, false self-employment income and expenses, and false education credits.
Chism prepared more than 550 false tax returns, seeking over $3.5 million in fraudulent tax refunds. The IRS paid at least $3.2 million in refunds on these bogus claims. Chism also failed to file individual tax returns or pay taxes on her own income for 2013-2015, despite earning more than $100,000 during those years.
Chism’s scheme was uncovered by special agents of the IRS Criminal Investigation. The investigation and prosecution of the case were led by Trial Attorneys Robert J. Boudreau and William Montague of the Tax Division and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.
Chism faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties. Sentencing is scheduled for November 8, 2018. The U.S. Attorney and Principal Deputy Assistant Attorney General commended the agents and attorneys involved in the case for their diligent work in bringing the scammer to justice.
The case is a stark reminder of the importance of tax compliance and the consequences of tax evasion. The Internal Revenue Service relies on honest taxpayers to fund public goods and services, and those who cheat the system put a burden on their fellow citizens.
The Tax Division of the Justice Department is committed to rooting out tax evasion and other financial crimes. Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Teresa Chism’s guilty plea is a significant victory for the taxpayer community, and it sends a clear message that tax fraud will not be tolerated. The Grimy Times will continue to follow this case and provide updates as more information becomes available.
Key Facts
- State: Mississippi
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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