A federal jury in Arizona found Darlene Musgrove, 68, of Tucson guilty on October 5 of 22 counts of preparing false federal income tax returns for her clients, the U.S. Attorney’s Office for the District of Arizona announced on October 6. Twelve of her clients testified at trial that they did not have the deductions that were put on their returns. The Justice Department puts the tax loss at about $127,166.
What the jury decided
Musgrove was a paid tax preparer. She was convicted on 22 counts of aiding and assisting in the preparation of false returns. Prosecutors say she added deductions the clients did not have so that their refunds would be larger and they would keep coming back. The clients who took the stand told the court they did not know about the deductions and that their refunds had been larger than in past years, according to the release.
The conviction is a jury verdict, and she has not been sentenced. Sentencing is scheduled for February 23, 2027, before U.S. District Judge Raner C. Collins. The charge of aiding and assisting in preparing false returns carries up to three years in prison and a $100,000 fine. The release does not name a business, and it does not say which deductions appeared on the returns. The case was investigated by IRS Criminal Investigation and prosecuted by the U.S. Attorney’s Office in Tucson…