Virginia return preparer sentenced to 33 months for filing false returns


Date: February 2, 2021


On February 1, 2021, Sherry Dudley was sentenced in Richmond, Virginia for aiding and assisting in the preparation of false tax returns. She was further ordered to pay restitution to the IRS in the amount of $556,656.

"As this year's filing season approaches, taxpayers should exercise caution when choosing a return preparer," said Kelly R. Jackson, IRS-CI Special Agent in Charge of the Washington DC Field Office. "Individuals can find very helpful information on to assist with questions on choosing a reputable return preparer, filing their federal tax return, and the most up to date information regarding economic impact payments."

According to court records, Dudley owned and operated a tax return preparation business from at least 2014 through 2018 where she prepared or caused to be prepared fraudulent personal income tax returns for her clients. These tax returns contained falsified information on the Schedules A, such as inflated of fictitious deductions for unreimbursed employee expenses and charitable contributions. In addition, Dudley also submitted false income tax returns in her own name claiming higher Schedule A deductions than she was entitled to report and claiming tax credits to which she was not entitled. Dudley pled guilty on August 26, 2020.

The investigation leading to the sentencing was conducted by Internal Revenue Service – Criminal Investigation.