A Kansas City woman pleaded guilty in federal court Wednesday to stealing money in a tax fraud scheme with a different twist.
Dinette Kay Cadenhead, also known as Kay Taylor, 46, created false deductions to increase client refunds without knowledge of the clients.
Then she diverted parts of the fraudulent refunds into her bank account.
According to a press release by federal prosecutors:
She admitted using the scheme to file at least 29 fraudulent tax returns from 2008 to 2010, when she worked out of her home and her Raytown office.
The tax loss associated with those false returns is almost $110,000.
In her plea, she admitted stealing $14,082 between Feb.12 and March 14, 2012.
The false entries included fraudulent charitable deductions, medical expenses, accounting expenses, IRA deductions and more.
She filed the returns electronically and indicated the returns were self prepared.
The money diverted into her bank account was in addition to her preparation fees of $65 to $600 per tax return.
She faces up to 10 years in prison and up to a $250,000 fine.
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