A Memphis woman has been indicted by a federal grand jury on several serious charges, including preparation of false tax returns and her own failure to file personal returns for several years. Lynette Hogue, who worked for a tax preparation business, is accused of helping clients get refunds they were not entitled to.
The indictment, returned Thursday, alleges Hogue prepared and filed fraudulent income tax returns for customers between 2021 and 2024. The returns were alleged to contain false information, which caused the IRS to issue undeserved refunds. At the same time, prosecutors say Hogue voluntarily did not file her own tax returns, despite receiving substantial income from her work in the tax preparation industry.
Hogue is charged with 29 counts of willfully aiding and assisting in the preparation and presentation of false tax returns. She is also charged with four counts of willfully failing to file a tax return. If convicted on all counts, she could receive a maximum sentence of three years in prison on each false return charge and one year on each failure to file.
The case underscores the dangers of unscrupulous tax preparation practices. The feds are stepping up enforcement against people and companies that cheat on their taxes. “Cases like this are not simply about getting back lost revenue. They are also about deterring similar schemes that undermine public confidence in the fairness of the tax code.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee made the announcement. Prosecution is conducted by attorneys in the Criminal Division’s Tax Section.
At this point, there is no proof of guilt, just an indictment. “Hogue, like all defendants, is innocent until proven guilty in a court of law beyond a reasonable doubt.”
This prosecution is part of a larger pattern of enforcement actions around the country to go after tax fraud. The IRS and Department of Justice also continue to make clear that they will hold people accountable for abusing the system, whether it’s by claiming inflated deductions, creating credits that don’t exist or simply not filing at all. Cases involving tax preparers carry extra significance because millions of Americans rely on them annually for tax preparation, and these cases may affect multiple taxpayers and involve large sums of money.
For honest taxpayers and legitimate preparers, stories such as this one are cautionary tales. You can steer clear of getting caught up in fraud, whether on purpose or by mistake, by choosing a reputable tax professional and reviewing returns carefully. The government has warned that it will come down hard on those who cross the line, no matter what part they play in the process.
Tax pros and enforcement officials will be watching the case against Hogue closely as it proceeds. In those cases, results often dictate the degree of compliance and the serious consequences of breaking or bending the rules. In the end, the integrity of the tax system is good for everyone who pays their fair share.