Maryland Tax Preparer Receives 12 Months in Prison for False Returns

A Maryland woman was sentenced to 12 months and one day in prison on May 15, 2026, for preparing false tax returns for clients, the U.S. Department of Justice announced.

The defendant prepared and filed returns that falsely claimed credits and deductions for multiple taxpayers. The exact number of returns and total tax loss were not detailed in the charging documents. Federal sentencing guidelines applied to the case produced the term of incarceration handed down by the district court.

The sentence marks the operational outcome of a criminal prosecution that began with an investigation into the preparer's business practices. Prior to sentencing the defendant faced potential penalties under statutes governing false tax return preparation.

The 12-month term takes effect immediately, with the defendant required to report to the Bureau of Prisons on a date set by the court following any appeal period.

Downstream, the conviction triggers standard post-sentencing requirements that include supervised release after the prison term and possible restitution to the IRS for any proven tax loss. The IRS can now use the criminal record to disallow any remaining fraudulent credits claimed on affected returns and pursue civil penalties against the taxpayers who used the preparer.

Other tax preparers operating in Maryland and surrounding jurisdictions face heightened scrutiny as the Justice Department and IRS continue to audit paid preparers who repeatedly claim questionable credits.

This sentencing is the latest in a series of federal cases targeting tax-return preparers. The Justice Department has pursued similar prosecutions in multiple districts, focusing on individuals and firms that systematically inflate refunds through false Earned Income Tax Credit, Child Tax Credit, and education credit claims.

The IRS has separately expanded its preparer oversight program, requiring more stringent due diligence documentation on high-risk credits since the 2021 filing season.