Owner Of Tax Prep Business Pleads Guilty To Filing False Returns

BIRMINGHAM, AL — The owner of a Birmingham tax return preparation business pleaded guilty to aiding and assisting in the preparation of false tax returns for clients.

According to documents and information provided to the court, Shuntan Rue owned and operated a tax return preparation business in the Birmingham area known as Rue Tax Service. Between 2013 and 2016, she is accused of preparing and filing false tax returns for her clients by claiming education credits and itemized deductions, among other items, to which her clients were not entitled.

As a result of these false tax returns, Rue caused her clients to underpay their income taxes, according to Prim Escalona, the U.S. Attorney for the Northern District of Alabama. In addition, Rue claimed similar false items on her own 2012 and 2013 federal income tax returns, officials said. Rue's conduct caused a loss to the IRS of more than $250,000, according to officials.

U.S. District Senior Judge Karon O. Bowdre scheduled sentencing for Feb. 3, 2021. Rue faces a statutory maximum sentence of three years in prison. She also faces a period of supervised release, restitution, and monetary penalties.