A Gulfport woman was sentenced to 48 months in prison for filing tax false returns, said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi in a press release.
Doris Kelley, 65, operated a tax return preparation business from her home. According to court documents, Kelley instructed several of her clients, who owed income taxes to the IRS, to write payment checks directly to her. Kelley kept these funds for herself and used most of the money to gamble at local casinos, Goldberg said.
Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley earned hundreds of thousands of dollars from her scheme and caused a tax loss of more than $500,000.
In addition to the term of imprisonment imposed, U.S. District Court Judge Sul Ozerden ordered Kelley to serve one year of supervised release and to pay $529,635.72 in restitution, to include $375,534.49 to the IRS and $162,101.23 to the individual victims. Kelley pleaded guilty in April to impeding the internal revenue laws and aiding in the preparation of a false tax return.
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Goldbert and Brittain commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted this case.