Aisha Dowling was arrested by officials with the South Carolina Department of Revenue in connection with an ongoing tax refund scam in the Lowcountry. The City of Charleston Police Department assisted with the arrest.
For tax years 2008 through 2011, Dowling, a Charleston resident, filed with tax preparers fraudulent W2 forms from employers where either she did not work during the time, or she had inflated the wages and withholding taxes. Dowling therefore received South Carolina tax refunds to which she was not entitled in the amounts of $600, $690, $640 and $692, for 2008, 2009, 2010 and 2011, respectively.
Dowling was charged with four felony charges of assisting in the preparation of a false return and four counts of forgery. She is facing charges of up to $40,000 in fines and/or 40 years in prison if convicted of the charges.
You may view previous installments of the great South Carolina tax cheat lock up by clicking here.
Some South Carolina residents are finding out the hard way what tax professionals have known for a long time; the state is frequently much more aggressive in enforcing tax law than the federal government.
There have been a string of recent arrests made by the South Carolina Department of Revenue for egregious but fairly common activities going back as far as 2007. I would expect that many of these people had pretty much considered themselves to have “gotten away” with these alleged crimes committed years earlier. There is no statute of limitations when it comes to tax fraud or failure to file.
If you think the tax laws are not enforced vigorously just scroll through the past few posts to see the details of what has transpired just in South Carolina.
If you have potential tax issues such as unfiled tax returns or amended returns that need to be filed contact Tax On Wheels, LLC at 803 732-4288, if possible before the tax authorities contact you.
Two men were arrested Tuesday by SC Department of Revenue officials following an ongoing investigation into an income tax refund scam in the Charleston area.
Luther Smalls and Smarty Campbell, both of Mount Pleasant, SC, were detained at the Charleston County Detention Center for separate charges of assisting in the preparation of a false return and forgery.
Upon review of Luther Smalls’ 2008 income tax returns, it was determined that Smalls filed his income taxes via a tax preparer and used a fraudulent W2 form from an employer who he did not work for during that time. By submission of the fraudulent W2 form, Smalls received an overstated fraudulent SC income tax refund of $713. If convicted of the two charges, Smalls, 49, could face up to $500 in fines and/or 15 years in prison.
For one charge of assisting in the preparation of a false return and one count of forgery, Smarty Campbell is facing charges of up to $500 in fines and/or 10 years in prison. Campbell, 64, submitted to a tax preparer his 2009 income tax returns containing a W2 form from a company in which he was never employed. By use of the fraudulent income tax return, Campbell received a state tax refund of $474 to which he was not entitled.
Leigh Anne Hoppe was arrested today for failure to file state income tax returns for years 2007, 2008 and 2009.
Hoppe, 48, is a timeshare agent in Hilton Head and earned income of $190,465 during years 2007 – 2009 with a tax liability of $8,944. Hoppe was required to file a South Carolina income tax return on or before April 15 for these tax years as required by law.
If convicted of the charges, Hoppe could face up to three years in prison and/or fines of up to $30,000.
A Mount Pleasant man is being held at the Charleston County Detention Center following his arrest today for one count of assisting in the preparation of a false return and one count of forgery.
Robert Vanderhorst, IV, 25, is currently being held pending a bond hearing and if charged, could face penalties of up to $500 in fines and/or 15 years in prison, according to investigators from the SC Department of Revenue.
Upon review of Vanderhorst’s 2009 income tax returns, SCDOR determined that Vanderhorst filed via a tax preparer and used a fraudulent W2 form from an employer who he did not work for during that time. By submission of the fraudulent W2 forms, Vanderhorst received an overstated fraudulent SC income tax refund of $679.
Darcell Lockwood was arrested today by SCDOR investigators for assisting in the preparation of a fraudulent return and forgery.
Lockwood, 36, is currently being held at the Charleston County Detention Center pending a bond hearing. The Mount Pleasant Police Department assisted with the arrest.
The arrest follows an ongoing investigation of a tax refund scam involving numerous individuals in the Charleston area. After reviewing Lockwood’s 2009 income tax returns, the SCDOR investigation revealed that Lockwood, a Mt. Pleasant resident, submitted to a tax preparer a fraudulent W2 form although Lockwood did not actually work for the employer listed.
The use of the W2 form resulted in Lockwood receiving a fraudulent SC income tax refund in the amount of $717, to which he was not entitled. If convicted of the charges, Lockwood could face up to $500 in fines and/or 15 years in prison.
The South Carolina Department of Revenue (SCDOR) is currently investigating a tax refund scam involving numerous individuals in the Mt. Pleasant and Charleston area, and another arrest was made this morning.
Tameka Coakley was arrested today for one count of assisting in the preparation of a false tax return and one count of forgery. If convicted of the charges, Coakley could face penalties of up to $500 in fines and/or 10 years in prison.
Upon reviewing Coakley’s 2008 income tax returns, investigators from SCDOR determined Coakley’s state tax return was filed by a tax preparer using fraudulent W2 forms provided by Coakley from her employer. The investigation revealed that Coakley worked for this employer in 2008, but she manipulated the wages and withholding information and thus received a SC income tax refund of $685.
Tameka Coakley is the fourth individual thus far to be arrested by SCDOR for tax fraud surrounding this tax refund scam in the Charleston area.
The Internal Revenue Service offers the following seven tips to help taxpayers avoid an emerging scheme tempting senior citizens and other taxpayers to file tax returns claiming fraudulent refunds.
These schemes promise refunds to people who have little or no income and normally don’t have a tax filing requirement.
Promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college.
Con artists falsely claim that refunds are available even if the victim went to school decades ago. In many cases, scammers are targeting seniors, people with very low incomes and members of church congregations with bogus promises of free money.
A variation of this scheme also falsely claims the college credit is available to compensate people for paying taxes on groceries.
These schemes can be quite costly for victims. Promoters may charge exorbitant upfront fees to file these claims and are often long gone when victims discover they’ve been scammed.
Taxpayers should be careful of these scams because, regardless of who prepared their tax return, the taxpayer is legally responsible for the accuracy of their tax return and must repay any refunds received in error, plus any penalties and interest. They may even face criminal prosecution.
To avoid becoming ensnared in these schemes, the IRS says taxpayers should beware of any of the following:
In recent weeks, the IRS has identified and stopped an upsurge of these bogus refund claims coming in from across the United States. The IRS is actively investigating the sources of this scheme, and its promoters can be subject to criminal prosecution.
Please contact Tax On Wheels, LLC at 803 732-4288 if we can assist you with these or other tax issues.
IRS YouTube Video: Tax Refund Scams: English | Spanish | ASL
WASHINGTON – The Internal Revenue Service today warned senior citizens and other taxpayers to beware of an emerging scheme tempting them to file tax returns claiming fraudulent refunds.
The scheme carries a common theme of promising refunds to people who have little or no income and normally don’t have a tax filing requirement. Under the scheme, promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college.
In recent weeks, the IRS has identified and stopped an upsurge of these bogus refund claims coming in from across the United States. The IRS is actively investigating the sources of the scheme, and its promoters may be subject to criminal prosecution.
“This is a disgraceful effort by scam artists to take advantage of people by giving them false hopes of a nonexistent refund,” said IRS Commissioner Doug Shulman. “We want to warn innocent taxpayers about this new scheme before more people get trapped.”
Typically, con artists falsely claim that refunds are available even if the victim went to school decades ago. In many cases, scammers are targeting seniors, people with very low incomes and members of church congregations with bogus promises of free money.
The IRS has also seen a variation of this scheme that incorrectly claims the college credit is available to compensate people for paying taxes on groceries.
The IRS has already detected and stopped thousands of these fraudulent claims. Nevertheless, the scheme can still be quite costly for victims. Promoters may charge exorbitant upfront fees to file these claims and are often long gone when victims discover they’ve been scammed.
The IRS is reminding people to be careful because all taxpayers, including those who use paid tax preparers, are legally responsible for the accuracy of their returns, and must repay any refunds received in error.
To get the facts on tax benefits related to education, go to the Tax Benefits for Education Information Center on IRS.gov.
To avoid becoming ensnared in this scheme, the IRS says taxpayers should beware of any of the following:
This refund scheme features many of the warning signs IRS cautions taxpayers to watch for when choosing a tax preparer. For advice on choosing a competent tax professional, see Tips for Choosing a Tax Return Preparer on IRS.gov.
For additional information on tax scams, see the 2012 Dirty Dozen list.
Update: Video added
The Internal Revenue Service has issued its annual “Dirty Dozen” tax scams list, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.
The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.
Illegal scams can lead to significant penalties and interest and possible criminal prosecution. The IRS Criminal Investigation Division works closely with the Department of Justice to shut down scams and prosecute the criminals behind them.
Here are five of the Dirty Dozen tax scams for 2012:
Identity theft In response to growing identity theft concerns, the IRS has embarked on a comprehensive strategy focused on preventing, detecting and resolving identity theft cases as soon as possible. In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued and is working to help victims of identity theft refund schemes.
Identity theft cases are among the most complex ones the IRS handles, but the agency is committed to working with taxpayers who have become victims of identity theft.
The IRS is increasingly seeing identity thieves looking for ways to use a legitimate taxpayer’s identity and personal information to file a tax return and claim a fraudulent refund.
An IRS notice informing a taxpayer that more than one return was filed in the taxpayer’s name or that the taxpayer received wages from an unknown employer may be the first tip off the individual receives that he or she has been victimized. Anyone who believes his or her personal information has been stolen and used for tax purposes should immediately contact the IRS Identity Protection Specialized Unit. For more information, visit the special identity theft page on this website.
Phishing These scams are typically carried out with the help of unsolicited email or a fake website that poses as a legitimate site to lure potential victims into providing valuable personal and financial information. Armed with this information, a criminal can commit identity theft or financial theft.
If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.
It is important to keep in mind the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS has information that can help you protect yourself from email scams.
Return preparer fraud About 60 percent of taxpayers will use tax professionals this year to prepare and file their tax returns. Most return preparers provide honest service to their clients. But as in any other business, there are also some who prey on unsuspecting taxpayers.
Questionable return preparers have been known to skim off their clients’ refunds, charge inflated fees for return preparation services and attract new clients by promising guaranteed or inflated refunds. Taxpayers should choose carefully when hiring a tax preparer. Federal courts have issued hundreds of injunctions ordering individuals to cease preparing returns, and the Department of Justice has pending complaints against many others.
In 2012, every paid preparer needs to have a Preparer Tax Identification Number (PTIN) and must enter it on the returns he or she prepares.
Signals to watch for when you are dealing with an unscrupulous return preparer would include that they:
For advice on how to find a competent tax professional, see Tips for Choosing a Tax Preparer.
Hiding income offshore Over the years, numerous individuals have been identified as evading U.S. taxes by hiding income in offshore banks, brokerage accounts or nominee entities and then using debit cards, credit cards or wire transfers to access the funds. Others have employed foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose.
The IRS uses information gained from its investigations to pursue taxpayers with undeclared accounts, as well as the banks and bankers suspected of helping clients hide their assets overseas. The IRS works closely with the Department of Justice to prosecute tax evasion cases.
While there are legitimate reasons for maintaining financial accounts abroad, there are reporting requirements that need to be fulfilled. U.S. taxpayers who maintain such accounts and who do not comply with reporting and disclosure requirements are breaking the law and risk significant penalties and fines, as well as the possibility of criminal prosecution.
“Free money” from the IRS & tax scams involving Social Security Fliers and advertisements for free money from the IRS, suggesting that the taxpayer can file a tax return with little or no documentation, have been appearing in community churches around the country. These schemes are also often spread by word of mouth as unsuspecting and well-intentioned people tell their friends and relatives. Scammers prey on low-income individuals and the elderly. They build false hopes and charge people good money for bad advice. In the end, the victims discover their claims are rejected. Meanwhile, the promoters are long gone. The IRS warns all taxpayers to remain vigilant.
There are a number of tax scams involving Social Security. For example, scammers have been known to lure the unsuspecting with promises of non-existent Social Security refunds or rebates. In another situation, a taxpayer may really be due a credit or refund but the scammer uses inflated amounts to complete the return for a larger refund they’ll run off with.
These are some of the Dirty Dozen Tax Scams for 2012. For a complete list, see IRS Releases the Dirty Dozen Tax Scams for 2012.
Tax On Wheels, LLC strives to be your one stop tax resource. If you have questions or concerns about tax related promises made by others please feel free to give us a call at 803 732-4288