Tax Preparer From South Jersey Admits to Fraud

A tax preparer from South Jersey admitted her role in a conspiracy to prepare false and fraudulent income tax returns that resulted in $340,000 in losses for the government, U.S. Attorney Paul J. Fishman said on Tuesday.

Grace Garrett, 63, of Pittsgrove, pleaded guilty to an information charging her with conspiring to aid and assist others in the preparation of false and fraudulent tax returns from 2007-2011.

Garrett committed the crimes while working as a tax preparer at Pender Tax Services in Rosenhayn.

Garrett and a co-conspirator sought to generate increased referrals, enhance their business, and enrich themselves by preparing and filing income tax returns based on false information, according to documents filed in the case and statements made in court.

They used a number of fraudulent practices, including

falsely claiming a filer was a “head of household;” inventing and inflating deductions; creating

fictitious dependents; and creating false credits for education and childcare.

Although taxpayers generally met with Garrett or the conspirator to provide information

to prepare their tax returns, it was routinely the conspirator whose name appeared as preparer of the return.

Garrett faces five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 11.