A York City woman is indicted on charges of conspiring to submit false and fradulent federal income tax returns. The U.S. Attorney for the Middle District of Pennsylvania claims that between January 1, 2009 through June 1, 2009, 35 year old Carmen Real, a manager at a tax service franchise in York, conspired with others to prepare and submit false tax returns with the IRS to obtain fraudulent refunds.
The indictment claims that Real prepared 29 returns for clients that included a combination of false information containing bogus dependents, Head of Household filing status, Earned Income Tax credit and Child Tax Credits. The scheme generated larger refunds for her clients.
An acquaintance of Real's allegedly took part in the scheme by recruiting clients. Real also had a contact living in Puerto Rico who gathered social security numbers and dates of birth of children, who resided in Puerto Rico. Real would then sell the identities of the children to her clients if they wanted to include bogus dependants on their tax returns. Real was aware that residents of Puerto Rico, under the island's tax laws, seldom declared children as dependents, making the illegal use of those names difficult to detect by the Internal Revenue Service.
The false claims lead to a total of more than $123,000 in refunds to Real's clients.
If convicted, Real faces up to 10 years in federal prison and a fine of $250,000.