Owner of Accounting Business Jailed for Tax Return Preparation Fraud

By December 24, 2015Tax Crimes, Tax Fraud

On Oct. 27, 2014 in Statesville, North Carolina, Denise Swanson, of Lenoir, North Carolina, was sentenced to 24 months in prison, three years of supervised release and ordered to pay restitution of $839,830 to client victims and $249,912 to IRS. Swanson previously pleaded guilty to tax evasion for tax year 2010. According to court documents, Swanson was the owner and operator of “Bottom-line Accounting,” a tax preparation and bookkeeping business. From 2006 to 2012, Swanson performed tax preparation services for her clients and their business, which included making related tax payments on their behalf. According to court records, Swanson received funds from her clients that were supposed to be used to pay their various tax obligations to IRS and other state agencies. But instead of making the payments, Swanson embezzled the money and used it to pay for personal expenses. Swanson failed to report the embezzled income on her own individual tax returns for tax years 2006 through 2011.