Clayton Woman Jailed on State Tax Charges

Date:  December 14, 2007

RALEIGH – A Clayton woman was sentenced to jail Friday in Wake County Superior Court on tax charges filed by the North Carolina Department of Revenue.

Hilda Adams Barnes, 56, of 1537 Barber Mill Road, Clayton was sentenced to a 30-month minimum, 36-month maximum active prison term for 34 counts of aiding or assisting in the preparation of fraudulent income tax returns and two counts of attempting to evade or defeat the state’s individual income tax. Barnes was found guilty by a jury trail on Sept. 7, 2007 however Wake County Superior Court Judge W. O. Smith, III deferred sentencing until the completion of a pre-sentence commitment study.

As part of her sentence, Barnes was also ordered not to prepare or file tax returns for others. The state’s evidence showed that she was a paid tax preparer and completed both original and amended North Carolina individual income tax returns for clients that she knew were false.

Barnes intentionally claimed the Social Security and Medicare taxes withheld from her clients’ wages as deductions on their tax returns even though the Department of Revenue and Internal Revenue Service had repeatedly advised her that these were not allowable deductions. She also claimed the deductions on returns she filed for herself. Barnes also told several of her clients that she had worked for the Internal Revenue Service and the North Carolina Department of Revenue, although she had never worked for either agency.

The charges against Barnes resulted from an investigation by the Department of Revenue’s Discovery and Special Projects Unit and a special agent with the Criminal Investigations Division.

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