Green Bay tax preparer said fraud meant to "stimulate the economy"

MGN Online

GREEN BAY, Wis. (WBAY) - A Green Bay woman has been sentenced to 21 months in federal prison for tax fraud. She told federal prosecutors that she did it to "stimulate the economy."

The United States Attorney's Office for the Eastern District of Wisconsin says Catalina Taboada, 47, prepared false income tax returns.

In 2009, Taboada started a tax preparation business Taboada & Associates in Green Bay.

Federal prosecutors say Taboada fraudulently claimed child tax credits for clients whose children lived in Mexico.

Taboada also claimed child tax credits for her clients' nieces, nephews, cousins and distant relatives, according to federal prosecutors.

She also claimed dependent exemptions for children who were not residents of the United States, Mexico or Canada.

"Taboada admitted to understanding the qualifying rules for child tax credits and exemptions, but nevertheless said that she made the fraudulent claims to 'stimulate the economy,'" reads a statement from the United States Attorney's Office.

United States Attorney Matthew D. Krueger disagrees.

“The honest women and men who pay their hard-earned money in taxes deserve to know that unscrupulous people who cheat on their taxes will be investigated, prosecuted, and incarcerated,” said U.S. Attorney Krueger. “Together with the IRS-Criminal Investigation, the Department of Justice will continue to prosecute tax fraud aggressively.”

On April 1, a federal judge sentenced Taboada to 21 months in federal prison. She agreed to pay $571,800 in restitution to the Internal Revenue Service.