A mother and son from Thomson have been sentenced to prison for filing fraudulent tax returns that obtained excess tax refunds for clients.
Annie Bailey, 67, was sentenced to 21 months in federal prison. Her son Tremarcus Bailey, 43, was sentenced to 30 months after both pleaded guilty to fraud in U.S. District Court for the Southern District of Georgia. There is no parole in the federal system.
“The Baileys’ business was a breeding ground for fraudulent activity, illegally enhancing their customers’ income tax refunds at the expense of the U.S. Treasury,” U.S. Attorney Jill Steinberg said.
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Annie Bailey owned Bailey’s Income Tax Service in Thomson. The Hill Street business had prepared tax returns for clients since 2000, but in 2017 came to the attention of IRS agents, who determined the mother and son “used fraudulent and fabricated information” to file returns.
The investigation determined that from 2014 to 2018, the fraudulent returns resulted in $683,046 in losses to the IRS.
In addition to the prison sentences, Chief U.S. District Court Judge J. Randal Hall ordered the Baileys to pay restitution of $683,046.
Susan McCord is a staff writer with The Augusta Press. Reach her at susan@theaugustapress.com
