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Texas Preparer Draws 30-Month Sentence

TexasMichelle A. Morin, a tax preparer based in Laredo, Texas, has been sentenced to 30 months in prison for filing phony tax returns. Morin also was ordered to undergo a year of supervised release and pay $20,146 in restitution to the Internal Revenue Service. She was accused of causing the government to lose more than $228,000 in taxes through the operation of her Discount Tax Service.

Almost a year ago, Morin pleaded guilty to one count of aiding and assisting in the preparation of false and fraudulent income tax returns. Her tools for inflating clients' refunds include phony itemized deductions and business losses and the use of a bogus claim for residential energy credits. She also added fake gifts to charity, job expenses and miscellaneous deductions and in some case had taxpayer refunds diverted to her personal bank account.

In her plea, she admitted claiming $83,184 for a non-existent online business on a taxpayer's 2009 tax return. Morin also fraudulently reported $2,000 in residential energy credits and then directed $2,000 of the refund to her personal account. The government said her actions spanned tax years 2007 through 2010.

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