Franklin Tax Preparer Admits Filing Hundreds of Fraud-Flagged Returns, Sentencing Set in Federal Court

Plea covers 2020–2022 returns and alleges millions in intended IRS losses

A 29-year-old Franklin resident who worked as a tax preparer in the Milwaukee area has pleaded guilty in federal court to aiding in the preparation of false federal income tax returns, a felony charge under federal tax law. The plea was entered Jan. 16, 2026, in the U.S. District Court for the Eastern District of Wisconsin.

The single count to which the defendant pleaded guilty alleges she willfully assisted in preparing returns that contained material falsehoods designed to increase refunds beyond what filers were legally entitled to receive. Federal prosecutors said the conduct involved electronically filing hundreds of returns over multiple tax years and using recurring patterns of false entries across many filings.

Scope of filings and categories of alleged false information

In the plea agreement filed in court, prosecutors described a three-year span of returns for the 2020, 2021 and 2022 tax years. Over that period, the defendant electronically filed approximately 424 federal returns with the Internal Revenue Service. Prosecutors said approximately 386 of those returns showed indicators and evidence of fraud.

The filings at issue largely involved individual income tax returns. Prosecutors said many of the returns reported materially false income figures tied to business income and losses, household employee wages, and ordinary dividends. The returns also included claims for refundable credits and other payments that prosecutors described as materially false, including:

• sick and family leave credits
• child and dependent care credits
• fuel tax credits
• claims associated with Internal Revenue Code Section 1341
• false income tax withholdings

Loss estimates and alleged financial motive

Prosecutors said the alleged misrepresentations increased clients’ refunds and, in turn, increased the preparer’s compensation. The plea agreement states an intended loss to the IRS of approximately $3,499,253 and an actual tax loss—based on fraudulent refunds paid—of $1,397,947. Prosecutors also said the preparer obtained approximately $253,712.89 in fees and commissions to which she was not entitled.

Potential penalties and next court date

The charge carries a maximum penalty of up to three years in federal prison and a fine of up to $250,000. Sentencing is scheduled for May 21, 2026, before U.S. Chief District Judge Pamela Pepper in Milwaukee.

The case was investigated by the IRS Criminal Investigation division and prosecuted in federal court in Milwaukee.

As with all criminal cases, sentencing will be determined by the court after reviewing the plea agreement, the federal sentencing guidelines, and information presented by both the prosecution and the defense.