ATLANTA - A Smyrna resident was sentenced to four years and three months in prison and forced to pay more than $300,000 in restitution for an alleged tax fraud scheme, for which the Internal Revenue Service paid more than $1 million in returns over three-and-a-half years.
The Department of Justice said 53-year-old Tamar Lee and co-conspirator Don Terry used names and stolen personal information to file fraudulent tax returns.
Another co-conspirator, who officials say is now dead, used their tax preparation business to file the returns.
The defendants allegedly filed fake W-2s and claimed refunds based on false federal tax withholdings. The dead co-conspirator allegedly used a refund transfer service to print refund checks at her business.
Lee, Terry and another person, identified as Jeffrey Smith, allegedly created businesses and stole information from existing companies to submit fraudulent corporate income tax returns.
Investigators said the scheme resulted in more than $2 million in claims over a three-and-a-half-years. The IRS paid more than $1 million in refunds for fraudulent corporate and individual income tax returns.
"The defendants stole the personal identifying information of innocent victims, netting more than $1 million in fraudulent refunds," said U.S. Attorney Kurt R. Erskine. "As we approach tax season, it is important to protect personal information from thieves who use it to further schemes like the one in this case."
Tamar Lee was found guilty in November and ordered to pay $306,316.22 in restitution. Smith was sentenced to three years, one month in prison and ordered to pay $695,191. Terry was sentenced to two years in prison and ordered to pay $1,332,115.
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