Durham Tax Preparer Pleads Guilty to State Tax Violations

Date: 11/2/2004

RALEIGH -- A Durham tax preparer, doing business as Redding Tax Service, pleaded guilty on Tuesday to felony tax charges filed by the North Carolina Department of Revenue.

Helen Redding, 50, of 1 Grove Park Road, Durham, entered guilty pleas to three counts of aiding or assisting in the preparation of fraudulent North Carolina individual income tax returns.

Wake County District Court Judge Michael Morgan sentenced Redding to three consecutive six-month minimum, eight-month maximum prison sentences. The sentences were suspended and Redding was placed on supervised probation for 36 months. She was ordered to pay a $1,200 criminal fine and perform 75 hours of community service within the next year. Redding was also ordered not to aid or assist in the preparation or filing of any tax return, with the exception of her own, during her probation period.

The state’s evidence showed Redding willfully aided or assisted in the preparation of at least three fraudulent federal and state income tax returns. Redding overstated the business expenses listed on her clients’ income tax returns, thereby reducing both the federal and state taxable income. During the investigation Redding provided a handwritten confession admitting to falsifying numbers on her clients’ returns.

The charges against Redding resulted from an investigation by a special agent with the Department of Revenue Criminal Investigations Division.

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