A woman who ran a Maplewood tax preparation business has admitted helping a client defraud the government in order to obtain tax refunds, the US Attorney's Office said Monday.
Zenobia Williams, 52, pleaded guilty to conspiring to defraud the IRS in Newark federal court. She is scheduled to be sentenced in April.
In 2016, her company, Maplewood Business Services, prepared a return for a New Jersey business owner reporting false labor expenses for the 2015 tax year.
On January 5, 2016, Williams sent the business owner a text message, stating, “Hey Fella, I have 1 client right now that needs 15,750 in income. I need you to produce a 1099MISC form for that person. I will give you the information. Let me know how much more income you need to 1099.”
Williams, working at the business owner's direction, prepared two 1099 forms falsely claiming that the business paid two people more than $27,000 combined. She also prepared a personal return for the business owner reporting the false expenses.
Williams also reported the bogus business expenses as income on the tax returns of the two individuals referred to above, which resulted in both receiving unwarranted tax refunds from the IRS.
Williams faces up to five years in prison and a $250,000 fine.
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