Lanett woman sentenced to 46 months in prison for filing fraudulent tax returns

LANETT, Ala. (WTVM) - A Lanett woman has been sentenced to 46 months in prison for aiding and assisting in the filing of fraudulent federal income tax returns.

Gladys Rosalynn McCauley, 43, owned Roz House of Tax, which she opened in 2014. The department of justice says her numerous false claims resulted in a tax loss to the IRS of over $1.5 million.

According to the department of justice, court documents revealed that McCauley collected fees as a percentage of the tax refunds she claimed for her customers. To inflate those refunds, she knowingly placed false items in her customers’ income tax returns.

The department of justice says McCauley claimed that customers were entitled to education and child tax credits even though she knew they were not entitled to these credits. The department also said McCauley would falsely claim a client had more than $34,000 in business losses.

United States Attorney Louis V. Franklin Sr. made the following statement regarding the case:

“For far too long, opportunistic tax return preparers like Ms. McCauley have preyed upon the unwitting taxpayers residing in this district,” stated United States Attorney Franklin. “As was the case here, preparers attempt to make money by putting false information on the tax returns of others. In doing so, the preparers subject their customers to possible future scrutiny by the IRS and they pocket money that should have gone to the public’s benefit. This conduct must stop. Hopefully, Ms. McCauley’s sentence will cause other tax return preparers who have considered running schemes like this to honestly and accurately prepare tax returns.”

McCauley’s case was prosecuted by Assistant United State Attorney Jonathan S. Ross.