ST. LOUIS – United States District Judge Ronnie L. White sentenced Tiffany McAllister to 37 months in prison today and ordered her to pay restitution in the amount of $902,854. The 44-year-old Florissant, Missouri resident pleaded guilty in March to three counts of tax fraud.
McAllister began operating a tax preparation service in 2009 and continued the business through the 2019 tax year.
During that period, McAllister registered two companies with the Missouri Secretary of State and obtained employer identification numbers for them through the Internal Revenue Service, even though she never transacted business nor employed anyone through either company. Nevertheless, between January 1, 2014, and December 31, 2016, McAllister prepared fraudulent tax returns claiming that she and some of her clients received wages and had taxes withheld with respect to the fictitious companies.
McAllister also knowingly prepared tax returns for clients that fraudulently claimed wages and withholdings from other fictitious businesses, self-employment business losses, and educational expenses, in order to increase the federal tax refunds her clients received.
An investigation by the Internal Revenue Service revealed McAllister received payment for assisting in the fraudulent preparation of 39 tax returns for the tax years of 2014 through 2017.
McAllister admits her false representations for the tax years of 2014, 2015, 2016, and 2017 created tax losses to the Internal Revenue Service totaling $920,854.
“For many years, Ms. McAllister abused her position as a return preparer to cheat the U.S. tax system as well as her client’s trust,” said Amanda Prestegard, Acting Special Agent in Charge of IRS Criminal Investigation’s St. Louis Field Office. “Now, Ms. McAllister faces severe consequences including imprisonment and substantial restitution to the IRS.”
The Internal Revenue Service investigated the case. Assistant United States Attorney Tracy Berry is handling this case.