Thursday, June 9, 2022

A Michigan return preparer pleaded guilty today to preparing a false tax return for a client.

According to court documents, Daneilla Allen co-owned All Star Tax Services, a return preparation business with locations in Michigan and Ohio. As part of her plea, Allen admitted that from 2014 through 2018 she prepared and filed false tax returns with the IRS for clients. The false tax returns contained fictitious business income and expenses, and false itemized deductions and education credits, in an effort to generate larger refunds than her clients were entitled to receive. Even after IRS special agents informed Allen she was the subject of a criminal investigation, she continued to prepare false returns for clients in 2020 and 2021. Allen admitted to causing a total tax loss to the IRS of more than $815,000.

Allen is scheduled to be sentenced on Sept. 7. She faces a maximum penalty of three years in prison for assisting the filing of a false tax return. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Jeffrey A. McLellan and Sam Bean of the Tax Division are prosecuting the case.