Lynn woman gets six months in tax fraud case

LYNN – A Lynn woman was sentenced in federal court Wednesday for preparing false tax returns at her Everett business, Senora Nancy’s Tax 1040.Nancy Baez, 39, was sentenced by U.S. District Judge Rya Zobel to six months in prison, followed by 12 months of supervised release.On Dec. 16, 2010, Baez pleaded guilty to aiding and assisting in the preparation of false tax returns. Baez had operated a tax-preparation service that primarily served the Hispanic community in and around Everett.According to a press release from U.S. Attorney Carmen Ortiz’s office, Baez lent her services as an experienced professional to unsophisticated clients, saying she could obtain fast refunds from the Internal Revenue Service.Her clients relied upon her to accurately prepare their tax returns, for a fee, in their effort to comply with U.S. tax laws. In order to deliver the results she promised, Baez routinely fabricated information on her clients’ returns and, by doing so, caused her clients to receive refunds to which they weren’t entitled. Her clients, unaware of the illegality of the refunds, generated repeat business for “Senora Nancy” via word of mouth.Baez admitted that her illegal actions caused a tax loss in the range of $80,000 to $200,000, but said she did not personally profit from her crimes.Prosecutors argued that Baez demonstrated a callous disregard for the harm she caused to those who relied upon her as a professional preparer.The case was prosecuted by Assistant U.S. Attorney Lori J. Holik of Ortiz’s Economic Crimes Unit.