Two tax preparers from Olive Branch, Mississippi, have been indicted on charges of submitting $65 million in false claims for refunds under COVID-19 relief programs. Renata Walton, 44, and Nicole Jones, 36, face over 50 counts of wire fraud, money laundering, preparing false tax returns, and obstruction of justice.
The U.S. attorney's office in Memphis announced that Walton and Jones filed for tax credits for their clients under the Employee Retention Credit and the Sick and Family Leave Credit, despite their clients not being entitled to them. This resulted in six-figure tax refunds for the clients, with Walton and Jones receiving large fees that were then laundered through local banks.
Additionally, Walton is accused of submitting false applications for the Paycheck Protection Program and Economic Injury Disaster Loans to the Small Business Administration.
Both tax preparers were aware of the federal investigation against them but continued to file false returns. Walton even advised her clients not to cooperate with Internal Revenue Service agents.
The Employee Retention Credit is a refundable tax credit for eligible businesses affected by the pandemic, while the Sick and Family Leave Credit provided tax credits to employers for wages paid during leave taken by workers recovering from injury, disability, illness, or vaccination-related conditions.
Walton and Jones pleaded not guilty and were released on $100,000 bond each. Their tax preparation business, R&B Tax Express, is currently closed for the season.
The indictment states that the fraudulent claims filed by Walton and Jones totaled over $65 million. The case highlights the importance of integrity in tax preparation and the consequences of submitting false claims for government relief programs.
