orangeleader.com (Orange, Texas)

Local News

November 10, 2012

Lufkin woman sentenced for tax fraud

BEAUMONT — A 52-year-old Lufkin, Texas woman has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales on Thursday.

Sheila Phillips pleaded guilty on May 30, 2012, to making a false statement to the Internal Revenue Service and was sentenced to 30 months in federal prison by U.S. District Judge Ron Clark. Phillips was also ordered to pay restitution in the amount of $124,217 to the Internal Revenue Service.

According to information presented in court, Phillips operated a tax preparation and electronic business initially doing business as Sheila’s Tax Return and later as Ashley’s Tax Service.

During that time, she prepared a tax return falsely stating that a specific individual was the head of household and that this same individual had a foster child qualifying this individual for a larger deduction. This individual did not have any children or foster children that would have qualified for this deduction.

In all, Phillips made false statements in 29 individual tax returns resulting in overpayments in the amount of $124,127. Phillips was indicted by a federal grand jury on Mar. 21, 2012 and charged with tax violations.

This case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.

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