Waterloo woman who filed false tax returns will serve a year in federal prison

A Waterloo woman, who previously operated a tax preparation business, was sentenced to more than a year in federal prison Tuesday for preparing and filing fraudulent tax returns for a client.

Victoria Jones, 49, pleaded guilty August 16, to one count of aiding and assisting the preparation and filing of a false and fraudulent tax return. She also was fined $15,000 and was ordered to pay restitution of $4,833 to the Internal Revenue Service.

According to a plea agreement, Jones, who operated her business between 2007 and 2010, admitted she prepared and filed a false 2007 tax return on behalf of a client, fraudulently reporting the more than $36,000 in business expenses that could be used as deductions. JOnes didn't determine the correct amount the client could claim but it would have been lower than $36,000. She also inflated the client's itemized deductions by $1,533 and claimed a false residential energy tax credit of $500. The client's claimed refund was $4,833 more than the client should have received.

Jones also admitted she had prepared and filed at least 20 false and fraudulent tax returns between 2007 and 2010, according to the plea agreement. The false and fraudulent tax returns she prepared and filed resulted in at least $30,000 in unwarranted refunds for her clients.

"Tax return preparers have a duty to their clients to prepare tax returns that comply with the law and are accurate," Sybil Smith, IRS Criminal Investigation special agent in charge, said in a statement. "Taxpayers should not pay good money for bad advice."

Jones was released on conditions previously set and will surrender to start serving her time Dec. 16.