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Former IRS Tax Examiner Pleads Guilty to Tax Fraud Directed Refund Amount to Herself as Compensation for Tax Preparation

Memphis, TN – Linda I. Williams, 52, has pleaded guilty to defrauding the Internal Revenue Service (IRS) by filing false tax returns for various taxpayers in the Memphis area. Acting U.S. Attorney, Joseph C. Murphy, Jr., announced the guilty plea today.

According to the information presented in court, Linda I. Williams, former Internal Revenue Service (IRS) tax examiner, prepared fraudulent returns seeking refunds for taxpayers and who, in some cases, directed part of the refunds as compensation to herself without the taxpayers’ knowledge. The false returns included fabricated deduction in order to claim higher refunds. Williams claimed over $500,000 in false deductions for these taxpayers.

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Williams is also accused of failing to report any of her return preparation income on her own returns and sought to have taxpayers lie to investigating Treasury and IRS-CI Agents concerning her receipt of return preparation income.

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Williams was a Tax Examiner of the Internal Revenue Service at the time of the alleged fraudulent activity and was under an obligation to truthfully report income received on her own income tax return.

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Sentencing is scheduled for August 12, 2021, before U.S. District Judge Sheryl H. Lipman. On February 25, 2021, Williams was charged with filing ten (10) false tax returns. She faces up to three years in federal prison for this offense and a fine of $250,000. There is no parole in the federal system.

This case was investigated by the Internal Revenue Service-Criminal Investigation and the Treasury Inspector General for Tax Administration.

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Assistant U.S. Attorney Dean DeCandia is prosecuting this case on behalf of the government.

SOURCE – DOJ

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