MACON, Ga. – A middle Georgia woman admitted she falsified tax documents and received more than $331,758 in refunds, including setting up a sham company that claimed hundreds of non-existent employees in an attempt to complete a total tax fraud scheme of more than $3.5 million.
Lonnise Janelle Andrews, 43, of Macon, pleaded guilty in September in the U.S. District of Marc T. Treadwell to one count of filing and signing a false tax return, one count of filing a false claim for a tax credit and one count of filing a false tax credit having made a false claim for a refund. 11. Andrews faces a maximum penalty of thirteen years in prison and a maximum fine of $600,000. Additionally, Andrews agreed to pay $331,758 in restitution to the IRS. Sentencing is scheduled for January 4, 2024. Andrews is not eligible for parole.
“Those who engage in tax refund schemes and fraud violate federal law and will be held accountable for these crimes,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement partners, we will pursue justice on behalf of taxpayers.”
“Today, Lonnise Andrews accepted responsibility for fraudulently obtaining tax refunds and employee retention credits when she pleaded guilty to these crimes,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Crime Special Agents will continue to investigate those who violate tax laws on behalf of honest taxpayers.”
According to court documents, Andrews falsified IRS tax forms for herself, her father and a fake company, reporting income, losses and withholdings that she knew were untrue. On her own Form 1040 filed for the 2019 tax year, Andrews used a tax preparation website to create fake Forms 1099-MISC and 1099-R; As a result, the IRS issued her a refund check for $165,245, which she was not entitled to, and she cashed it.
In addition to the false Forms 1040 filed for herself and her father, Andrews filed false Forms 941 and Forms 7200. The latter were developed by the IRS in response to payroll tax laws, including the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Andrews applied for an organization called Andrews Harris Corbin (AHC) and listed her father and a fictitious person named “Greg Corbin” as AHC organizers. AHC never filed an income tax return, was not designated as a Schedule C corporation on any tax returns, and never filed documents with the Social Security Administration regarding its employees. Andrews signed and submitted the false forms in 2020 and attempted – and at one point successfully succeeded – to obtain refunds and credits. She reported that AHC employed 957 people and claimed a credit of $3,086,325 on Form 7200. On April 11, 2020, she filed a quarterly Form 941 reporting that AHC paid $1,435,500 in wages, tips and other compensation and requested a refund of $25,978.83. AHC had no employees, had not paid payroll taxes to qualify for a refund, and was not entitled to these credits and refunds. The IRS processed the Form 941 refund request and sent a check for $25,978.83 to AHC to a UPS mailbox in Macon that Andrews had set up by her father. Surveillance video confirmed that her father picked up the check on December 8, 2020. The check was bounced and was later found in her bedroom during a search.
As part of her plea agreement, Andrews agreed to repay all of the tax refunds listed in the indictment, totaling $331,758.
The case was investigated by the IRS.
Assistant U.S. Attorneys Elizabeth Howard and Amy Helmick are prosecuting the case for the government.
