Montgomery, Ala. (WRBL) – A Lanett woman pleads guilty to charges of assisting in the filing of a fraudulent federal income tax returns.
Monday, August 26, 2019, 42-year-old Gladys McCauley of Lanett, Alabama, pleaded guilty to two counts of aiding and assisting in the filing of false federal income tax returns, announced United States Attorney Louis V. Franklin, Sr.
According to court documents, McCauley owned an income tax preparation business in Lanett called “Roz House of Tax.”
McCauley’s business collected fees out of the tax refunds McCauley claimed for those customers. In order to inflate those refunds, McCauley knowingly placed false items in her customers’ income tax returns. Per the indictment, this type of fraudulent activity was documented as early as January 2015, and continued through May 2017. In one example from March 2016, McCauley falsely claimed customers were entitled to education tax credits and child tax credits—even though she knew the customers were entitled to no such credits.
McCauley’s sentencing hearing is currently scheduled for November 26, 2019 and she is facing up to six years in prison, along with significant monetary fees. Additionally, she will be ordered to never again prepare income tax returns for others.
This case was investigated by the Internal Revenue Service’s Criminal Investigation Division. Assistant United States Attorney Jonathan S. Ross prosecuted the case.