Teresa Marty, Tax Fraud, California 2023

A federal judge in Sacramento has barred Placerville-based Teresa Marty and her business, Advanced Financial Services, LLC, from acting as a federal tax return preparer.

According to court documents, in 2008 and 2009 Marty prepared and filed fraudulent tax returns with fabricated amounts of federal taxes withheld.

The false reporting of tax withholding led to fraudulent refund claims in amounts as large as $2.7 million per customer.

The court also found that to support those fraudulent refund claims, Marty prepared and filed false IRS 1099 forms.

The IRS had identified approximately 110 returns that Marty prepared and filed that use false 1099 forms to generate fraudulent refund claims.

The court stated that the scheme Marty employed appeared to be part of a growing trend among tax protesters to file frivolous tax returns and 1099 forms in an attempt to escape their federal tax obligations and to fraudulently obtain money from the U.S. Treasury.

In addition to barring Marty from preparing federal tax returns, the court ordered her to provide to the United States a complete customer list and to notify her customers of the court's order.

Source: https://www.justice.gov/archives/opa/pr/federal-court-shuts-down-california-tax-preparer