N.J. Tax Preparer Pleads Guilty to Filing Bogus Tax Returns

A New Jersey corrections officer who is also sole owner and operator of a tax preparation business in Orange, N.J., has pleaded guilty to filing false tax returns.  

Alicia Barnes, of Irvington, N.J., admitted Wednesday to one count of aiding and assisting in the preparation and filing of false personal federal tax returns. She also pled guilty to one count of knowingly subscribing to false personal federal income tax returns. 

Each count carries a maximum of three years in prison and a fine of $250,000. Barnes is scheduled to be sentenced on Nov. 9, 2012. 

According to court statements, Barnes filed 42 false tax returns between 2006 and 2008 on behalf of clients at her tax prep business, Just Taxes Unlimited LLC. She fabricated deductions for charitable contributions and unreimbursed employee expenses. During the same time frame, Barnes failed to report income she earned through her tax preparation business.

Barnes collectively racked up a tax loss of roughly $200,000. She has agreed to make full restitution to the IRS.

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