A Grand Junction woman has been indicted by a federal jury for filing for more than $70,000 in fraudulent tax refunds. 51-year-old Kris Smith falsely reported zero taxable income for three years starting in 1999. In addition, she also filed a claim for $70,000 in refunds for 1997 and 1998.
Smith was a client of Anderson's Ark and Associates, a company that promoted and sold fraudulent off–shore tax shelters. The Internal Revenue Service began looking into the company after several clients tipped off I.R.S. investigators.
Anderson's Ark and Associates eventually grew to service 15,000 clients, nearly 300 of whom claimed more than $120 million in tax claims. The company promoted phony partnerships resulting in losses as well as false company expenses.
So far, 16 clients have been indicted resulting in 7 guilty pleas and one trial conviction.
Smith could receive a maximum of 3 years in prison and $100,000 in fines for each of her five violations.
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