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A Georgia tax preparer has admitted to filing fraudulent income tax returns that resulted in more than $3 million in losses for the federal government, prosecutors revealed this week.

Jessica Crawford, a tax preparer from Athens, Georgia, pled guilty on Friday to one count of wire fraud and one count of aiding and assisting in the preparation of false income tax returns. The U.S. Attorney's Office for the Middle District of Georgia made the announcement Tuesday, detailing Crawford's involvement in a widespread scheme that defrauded the Internal Revenue Service (IRS) over the course of two years.

Fraudulent Tax Credits and False Returns

Between 2020 and 2021, Crawford manipulated tax returns to claim improper credits, including sick leave, family leave, and dependent exemptions, leading to significant losses for the IRS. The government estimates that these fraudulent claims cost taxpayers more than $3 million in unwarranted refunds.

“Jessica Crawford was an unscrupulous return preparer who allowed greed to cloud her judgment and neglected her responsibility to file accurate tax returns,” said Demetrius Hardeman, special agent in charge of the IRS’ Criminal Investigation division in Atlanta. He emphasized that Crawford’s actions were not reflective of the broader tax preparation community, which largely operates with integrity.

Discovery of Fraud During Unemployment Benefits Probe

The scheme came to light as part of a larger FBI investigation into a multistate unemployment benefits fraud operation tied to the COVID-19 pandemic. The investigation revealed that Crawford had filed fraudulent Pandemic Unemployment Assistance (PUA) claims on behalf of individuals who had submitted false information or created fictitious businesses to claim the benefits. In return, Crawford received a percentage of the illegally obtained funds.

In April 2022, following the FBI's findings, the IRS launched an undercover operation to probe Crawford’s activities further. During the operation, Crawford prepared a fake tax return for an agent that included inflated deductions, false credits, and a fabricated business loss of over $19,000. This fraudulent return claimed a refund of more than $12,000, underscoring the extent of the fraud.

Implications and Upcoming Sentencing

Crawford is set to be sentenced on March 19, facing up to 30 years in prison and a potential $1 million fine. Her guilty plea marks a significant step in addressing tax fraud within the industry, with authorities stressing that her case is an outlier.

Representatives for Crawford did not respond immediately to requests for comment, but her legal counsel, Frank G. Podesta of FGP Law, has indicated that she will be addressing the charges at sentencing. The case continues to underscore the risks of fraudulent tax schemes, especially during periods of economic uncertainty and crisis.

The U.S. government is represented by Leah E. McEwen and Robert D. McCullers of the U.S. Attorney’s Office for the Middle District of Georgia.