Arizona woman admitted filing fraudulent tax claims seeking millions in government refunds.
An Arizona woman has admitted to taking part in a tax fraud scheme that involved trying to get more than $7.7 million from the federal government through false tax refund claims. Federal prosecutors said the case involved fake business tax filings tied to pandemic relief programs that were created to help companies stay afloat during the COVID-19 emergency. According to court records, Regina Durkin of New River, Arizona, pleaded guilty to one count of conspiracy to file false claims. Authorities said she worked with other people to send false quarterly employment tax returns to the Internal Revenue Service in an effort to collect millions of dollars in refunds that were not earned.
The false claims centered on two tax credits approved by Congress during the height of the COVID pandemic. One was the Employee Retention Credit, which was designed to help businesses keep workers on payroll during difficult financial times. The other involved paid sick and family leave credits that helped employers cover wages paid to workers who needed time away because of COVID-19. Prosecutors said the businesses listed in the tax filings did not qualify for either program, because they were not operating during the time covered by the claims, had no employees, and paid no wages. Even so, forms were submitted asking for large refunds based on workers who did not exist and payroll expenses that never happened.
In total, officials said Durkin and others filed 14 false refund claims seeking more than $7.7 million from the IRS. Durkin entered a guilty plea in federal court and is expected to be sentenced on September 11 of this year. The charge carries a maximum prison sentence of ten years.
Department of Justice (DOJ) officials said tax fraud hurts honest taxpayers and weakens trust in government programs. They said law enforcement agencies continue searching for people who illegally profit from relief programs that were created to help businesses and workers during times of national hardship. Prosecutors also said the investigation shows that emergency programs remain under close review even years after the pandemic. Authorities continue examining claims connected to COVID-19 relief funds and bringing charges when they believe fraud has occurred.
IRS Criminal Investigation handled the investigation leading to Durkin’s guilty plea. Officials with the agency said financial crimes involving government relief money remain a top priority. They warned that investigators have the training and tools needed to track complicated money trails and uncover false tax filings. The agency also said the case should serve as a reminder that attempts to steal taxpayer money can carry serious legal consequences. Investigators said anyone who submits false information to receive government funds risks criminal charges, financial penalties, and possible prison time.
The case against Durkin is being handled by attorneys from the Justice Department’s Criminal Division along with the U.S. Attorney’s Office for the District of Arizona. Federal officials said the investigation remains part of broader efforts to protect taxpayer money and hold people accountable for fraud involving pandemic relief programs.
Sources:
Arizona Woman Pleads Guilty to $7.7 Million Tax Refund Fraud Scheme
Fake Employees, Real Prison Time: Arizona Woman Admits To $7.7M IRS Relief Fraud
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