Sedalia Man Pleads Guilty in Large Tax Fraud
JEFFERSON CITY (AP) - A Sedalia business owner pleaded guilty to making false claims on federal tax returns that brought nearly $478,000 to clients through improper tax credits.
Federal prosecutors announced Thursday that the scheme by 44-year-old Martha Stokes involved 186 clients in South Dakota.
In 2009 and 2010, Stokes prepared taxes for clients in several states through her Sedalia business, Destino Servicios Administravos.
Stokes admitted Thursday that in 186 fraudulent tax returns filed for South Dakota clients, she claimed a child tax credit to which they were not entitled. The tax loss for those returns totaled $477,934.
Stokes faces up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.