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Friday, May 3, 2024

Chicago-Area Tax Preparer Sentenced for False Return Scheme

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Merrick B. Garland Attorney General at U.S. Department of Justice | Official website

An Illinois woman, Vervia Watts, has been sentenced to one year and one day in prison for her involvement in preparing and filing false income tax returns for clients. Watts, operating a tax preparation business, filed over 900 fraudulent income tax returns for clients between January 2017 and June 2023. These returns included false education expenses and business income to inflate IRS refunds, totaling approximately $1.3 million.

In addition to the prison sentence, U.S. District Judge Lindsay C. Jenkins for the Northern District of Illinois has ordered Watts to serve one year of supervised release and to pay approximately $1,349,314 in restitution to the IRS. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced the sentencing, highlighting the severity of the false return scheme.

The IRS Criminal Investigation conducted the investigation into Watts' fraudulent activities, with Trial Attorneys Meredith Havekost and Regina Jeon of the Tax Division prosecuting the case. Watts' sentencing serves as a reminder of the legal consequences of engaging in tax fraud and the commitment of authorities to uphold the integrity of the tax system.

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