RALEIGH – A former tax preparer pleaded guilty Friday in Wake County District Court to felony tax charges filed by the North Carolina Department of Revenue.

Percy S. Coker, 34, entered guilty pleas to two counts of aiding or assisting in the preparation of fraudulent North Carolina individual income tax returns.

Wake County District Court Judge Craig Croom sentenced Coker to two consecutive six-month minimum, eight-month maximum prison terms. The sentence was suspended and Coker was placed on 36 months of supervised probation. He was also ordered to serve a 25-day active sentence as a special condition of his probation. Coker must also perform 100 hours of community service, pay a $1,000 fine. And he must not aid or assist in the preparation of any future income tax returns.

The state’s evidence showed that Coker prepared tax returns for clients that included fraudulent business expenses, which reduced his clients’ taxable income and caused the Department of Revenue to issue tax larger tax refunds to the individuals than they were legally entitled to receive. Many of Coker’s clients did not realize the expenses had been claimed on their returns. Coker previously worked for the Income Tax Shop of Raleigh however he is no longer associated with the company.

The charges against Coker resulted from an investigation by a special agent with the Department’s Criminal Investigations Division in Raleigh.

Last modified on: 10/31/07 03:43:54 PM .