A Nevada resident, Candies Goode-McCoy, has admitted to conspiring to defraud the United States by filing false claims for COVID-19 related employment tax credits. The guilty plea was entered in a Las Vegas court.
Court documents reveal that McCoy, along with others, filed approximately 1,227 fraudulent tax returns from June 2022 to September 2023. These filings sought refunds based on the employee retention credit (ERC) and paid sick and family leave credit. The total amount claimed exceeded $98 million, of which the IRS disbursed about $33 million.
McCoy personally gained over $1.3 million in fraudulent refunds and received around $800,000 from individuals for whom she filed these returns. It was acknowledged that neither McCoy nor her clients were eligible for the credits claimed. The proceeds were used by McCoy for personal expenses such as luxury cars, gambling, vacations, and other high-end goods.
The ERC was established by Congress to aid small businesses during the economic downturn caused by COVID-19. It allowed businesses to reduce their employment tax liabilities. Additionally, a credit against employment taxes was authorized to compensate businesses for wages paid during employees' sick or family leave due to COVID-19.
McCoy is set to be sentenced on February 23, 2026. She could face up to 10 years in prison along with supervised release, restitution, and monetary penalties. A federal district court judge will determine her sentence after considering various guidelines and statutory factors.
The announcement was made by Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Sue Fahami for the District of Nevada.
The investigation is being conducted by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration.
Trial Attorney John C. Gerardi of the Tax Division and Assistant U.S. Attorney Richard Anthony Lopez are handling prosecution duties in this case.