Teresa Marty, Tax Preparer Fraud, California 2024

SACRAMENTO, Calif. – A Pollock Pines woman who owned a tax return preparation business was sentenced to serve 120 months in prison today for conspiring to file more than 250 false refund claims.

Teresa Marty, 57, was the owner of Advanced Financial Services (AFS), a Placerville tax return preparation business. Marty conspired with her office manager, Pamela Harris and Rebecca Bandera-Marty to file fraudulent federal tax returns claiming more than $60 million in refunds.

According to documents filed with the court, Marty recruited clients by falsely representing that the clients could legally receive large refunds by filing tax returns using IRS Forms 1099-OID. AFS prepared false Forms 1099-OID that reported the clients’ debts as income and the same amount as income tax withheld, resulting in significant claims for refund to which the clients were not entitled.

The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.

Marty, Harris and Bandera-Marty were indicted in June 2013 along with two clients, Charles and Victoria Tingler. Thereafter, Marty and the Tinglers, with the help of Harris, filed fraudulent multimillion dollar liens against government officials, including three IRS employees involved in the collection of taxes the Tinglers owed the IRS as a result of the scheme.

Marty was ordered to serve two years of supervised release and to pay $9,500,492 in restitution to the IRS.

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