According to a press statement from the U.
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S. Department of Justice, Eastern District of North Carolina, two North Carolina women were sentenced to jail earlier this month for producing fake tax returns for customers and causing them to be filed with the IRS.
Court documents and testimony suggest that Rocky Mount residents Betty Hawkins, 51, and Phyllis Ricks, 63, colluded to submit fake tax returns on behalf of their clients between 2009 and 2018.
According to the announcement, the forms had fabricated federal income tax withholding amounts and other fraudulent items that resulted in phoney refunds for the customers.
More than 1,000 phoney tax forms seeking nearly $5 million in fraudulent refunds were filed with the IRS by Hawkins, Ricks, and their co-conspirators, according to the statement.
Ricks received a three-year prison term on January 5, 2023, while Hawkins received a two-year term on January 4, 2023.
U.S. District Judge Terrence W. Boyle sentenced both women to jail time, three years of supervised release, and the payment of restitution to the United States totaling around $5.2 million.
U.S. Attorney for the Eastern District of North Carolina Michael F. Easley and Acting Deputy Assistant Attorney General Stuart M.
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Goldberg of the Justice Department’s Tax Division issued the official statement.
IRS-Criminal Investigation conducted the investigation, and trial attorney Mary Frances Richardson of the Tax Division and Assistant U.S. Attorney Susan Menzer prosecuted the case.