A Chapmanville woman admitted Monday to preparing more than 40 false federal tax returns over a three year period.
Maria Martin, 64, faces up to three years in prison after pleading guilty to aiding and assisting in false and fraudulent returns.
Martin admitted that she would file the false returns from her home in Logan County for people that she knew or that were referred to her, according to court documents and a news release from U.S. Attorney Booth Goodwin's office.
Martin filed 1040 forms and claimed that clients had earned income under Schedule C, which is a form used to report income or loss from a business operated as a sole proprietor, making her clients eligible for an Earned Income Tax Credit or a Child Tax Credit, her plea agreement states.
Prosecutors said that Martin knew by falsely claiming eligibility for those credits would result in higher federal income tax refunds. Martin admitted to making $188,665 between 2011 and 2013, court documents show.
She would set refunds to be direct deposited to designated bank accounts and then take only half of the money to her client - either in cash or by cashier's check, her plea agreement states.
Martin has agreed to pay back the $188,665 in restitution, as part of her deal with prosecutors. She also agreed to, among other things, identify for federal agents any assets that could be applied toward that amount.
She also faces a fine up to $250,000. Sentencing is set for Feb. 18.
The Department of the Treasury and the Internal Revenue Service conducted the investigation and Assistant U.S. Attorney Erik Goes prosecuted the case.