A mother-son duo who ran a tax preparation service in McDuffie County, Georgia, has been handed prison sentences for their parts in a fraudulent scheme that padded their pockets with ill-gotten gains, according to the U.S. Department of Justice. Annie Bailey, 67, and her son Tremarcus Bailey, 43, were sentenced to 21 and 30 months in prison respectively after pleading guilty to Conspiracy to Defraud the United States, as stated by U.S. Attorney Jill E. Steinberg.
Not only will the Baileys serve hard time, they are also on the hook to pay a hefty restitution sum of $683,046, and, after their release, they will remain under the watchful eye of the law during a three-year supervised release period. The absence of parole in the federal system means the Baileys will likely serve the full term of their sentences. "The Baileys' business was a breeding ground for fraudulent activity, illegally enhancing their customers' income tax refunds at the expense of the U.S. Treasury," Steinberg remarked in light of their sentences.
The illegal activities carried out by the Baileys through their family business, Bailey's Tax Service, had been ongoing since as early as 2000. However, the IRS Criminal Investigation only caught wind of their operations in 2017. An intensive probe ensued, uncovering that from 2014 to 2018, the fraudulent returns prepared by the Baileys resulted in a lofty criminal tax loss of over $683,000 to the IRS. Their method involved falsifying information on individual tax returns to increase their clients' refunds — a lucrative but illegal tactic that has now caught up with them.
Demetrius Hardeman, Acting Special Agent in Charge of the Atlanta Field Office of IRS-Criminal Investigation, issued a stark warning to other tax preparers thinking of following in the Baileys' crooked footsteps: "The sentencings of the Baileys should serve as a notice to dishonest tax preparers that their fraud will eventually be uncovered." Hardeman also stressed the importance of taxpayers checking their returns for accuracy with their preparers to prevent being ensnared in similar scams.
The swift justice served in this case was the result of the diligent efforts of the Internal Revenue Service Criminal Investigation and the U.S. Attorney's Office, with Assistant U.S. Attorney Henry W. Syms Jr. leading the prosecution. Both Annie and Tremarcus Bailey now face the repercussions of their choices within the confines of a prison cell, as the government cracks down on financial fraud and tax evasion.
