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N.C. Preparer Draws 22 Months in Prison

A North Carolina tax preparer, who charged some clients up to $3,000 for preparing tax returns, has been sentenced to 22 months in prison. Karen Marie Jones of Durham, N.C., must also pay $1,264,493 in restitution to the United States and undergo three years of supervised release.

Jones, who owned Jones and Stone Taxes, was charged with conspiring to defraud the United States. Her two co-conspirators, Andrea Marie Pasley and Audrey Renetta Odom have pleaded guilty to similar charges,

 According to court documents, Jones and the other two defendants prepared false returns from 2012 through 2017. They used techniques such as claiming false education credits or dependents or by manipulating  clients’ income to qualify for larger earned income tax credits to produce larger client returns

Pasley, who pleaded guilty this week, faces a maximum penalty of five years in prison and is scheduled to be sentenced on August 11. Odom, who  pleaded guilty to conspiracy to defraud the IRS in December, is scheduled to be sentenced in June 2021.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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