Richmond Heights Woman Ordered To Pay $500,000 In Restitution

RICHMOND HEIGHTS, OH — A Richmond Heights woman was sentenced to 18 months in prison and ordered to pay more than $500,000 in restitution for preparing false tax returns.

Karla Jenkins, 48, pleaded guilty to aiding and assisting in the preparation of a false and fraudulent return, and one count of making and subscribing a false income tax return. She was sentenced this week.

"Those who cheat on their taxes are cheating the American public," U.S. Attorney Justin Herdman said.

Jenkins ran Vertical Tax Service from an office on Mayfield Road in South Euclid. She would prepare false tax returns for her clients, including taking inflated or improper deductions for medical and dental expenses, charitable contributions and other expenses, court documents said.

Vertical Tax Service clients would get the majority of the tax refund, but Jenkins would receive a portion of the refund as a preparation fee. This scheme started in 2012 and continued through 2015, court documents said.

She was taken into custody after being investigated by the Internal Revenue Service.

Jenkins was ordered to pay $531,240 in restitution.

“Karla Jenkins owned a tax preparation business that blatantly ignored the tax laws by preparing false tax returns and misusing her electronic filing privileges,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients. Criminal Investigation will continue to ensure that all tax practitioners, tax preparers and others who practice in the tax law profession adhere to professional standards and follow the law.”