Tax Preparer Fined $409K for Identity Theft and Fraud

An Arizona tax preparer has been sentenced to almost six years in prison and fined $409,000 for identity theft, wire fraud and filing false returns. Latoya Nivea Morehead, a 33-year-old from Glendale, Arizona, was convicted of preparing hundreds of tax returns containing false information.

Prosecutors say that Morehead prepared returns using taxpayer identities without their knowledge and then falsified numbers to maximize earned income tax credits. She was accused of preparing and submitting more than 100 fraudulent tax returns from 2006 to 2009. 

Morehead’s business, which was called “Latoya’s Tax Service,” also failed to report income to the Internal Revenue Service and falsified financial losses, according to Arizona’s U.S. Attorneys’ Office. 

This news comes just days after the IRS warned taxpayers about the latest phone scam being used by identity thieves. With this scheme, victims receive a phone call (allegedly) from the IRS alerting them that they are the victim of identity theft. The caller goes on to say that the victim is not eligible to file electronically and must file the return and payment by regular mail.

The IRS says you should never pay over the phone or send your return and payment anywhere other than an IRS Service Center. The IRS also cautions not to give out your social security number or any other personal information over the phone unless you are sure you are talking with the real IRS.