Montgomery Tax Preparer Sentenced to 37 Months in Prison and Fined $100,000.00 for Filing False Returns

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FILE PHOTO: Signage is seen at the United States Department of Justice headquarters in Washington, D.C.

           Montgomery, Ala. –    Today, United States Attorney Sandra J. Stewart and Special Agent in Charge James E. Dorsey with IRS Criminal Investigation, Atlanta Field Office, announced that a Montgomery tax preparer was sentenced for aiding and assisting in the preparation of false income tax returns. On Monday, March 28, 2022, Alisaya Danita Thompson-Dixon, 44, was sentenced to 37 months in prison to be followed by 12 months of supervised release. There is no parole in the federal system. In addition to her prison sentence, Thompson-Dixon was also ordered to pay a fine of $100,000.00 and $21,793.00 in restitution to the IRS.

            According to her plea agreement and other court records, Ms. Thompson-Dixon operated a Montgomery tax preparation business under the name Magic Tax Service. In June of 2021, a grand jury returned an indictment against Ms. Thompson-Dixon charging her with numerous counts of aiding and assisting in the filing of false returns for clients from 2015 through 2017. During her plea hearing on October 14, 2021, Ms. Thompson-Dixon specifically admitted to assisting in filing false tax returns on at least two occasions. First, on February 15, 2016, Ms. Thompson-Dixon aided a client in filing a tax return that falsely claimed business income in the amount of $2,150.00 while claiming expenses in the amount of $67,107.00. Ms. Thompson-Dixon knew the client was not entitled to claim any business income or expenses and this deception resulted in a loss of $11,294.00 to the IRS. In addition, Ms. Thompson-Dixon also admitted to aiding a client in filing an illegal tax return on January 16, 2018. In similar fashion, she claimed false business revenue and expenses for a client that resulted in a tax loss of $10,499.00.

           Far too many tax preparers attempt to make money by putting false information on the returns of others,” stated U.S. Attorney Stewart. “In doing so, they are not only committing a crime, but they are also subjecting their customers to potential future scrutiny by the IRS. Hopefully, Ms. Thompson-Dixon’s sentence will serve as a warning to other tax return preparers who are considering schemes like these. I applaud the Internal Revenue Service for their efforts to identify tax fraud like this and hold the offenders accountable.” U.S. Attorney Stewart also encourages all taxpayers to review their returns and confirm that they recognize the items on them. If a tax preparer refuses to let you examine your tax return before it is filed, or if you review your tax return and see a business that is not yours or expenses you do not recognize, ask for clarification or seek a second opinion from a different return preparer. For additional guidance, see the IRS fact sheet on their website at https://www.irs.gov/pub/irs-news/fs-08-10.pdf.

            “Yesterday’s sentencing of Thompson-Dixon is further evidence that tax crimes do not pay in the long run,” said Special Agent in Charge Dorsey. “As we continue the 2022 tax filing season, those who might consider preparing false tax returns should be aware of the negative consequences as evidenced in this sentencing. The sentencing of Thompson-Dixon emphasizes, the Internal Revenue Service and U.S. Attorney’s Office will continue aggressive pursuit of those who attempt to defraud America’s tax system.”

            This case was investigated by the Internal Revenue Service’s Criminal Investigations Division. Assistant United States Attorney Megan Kirkpatrick prosecuted the case.