Two women convicted of tax fraud for filing false returns

Rachel Watson, age 31, of Effingham, and Susann Allen, age 37, of Darlington, were found guilty of Conspiracy to Defraud the United States.

Rachel Watson was also convicted of fifteen counts of Aiding and Assisting in the Preparation of False Tax Returns and Susann Allen was convicted of two counts of Aiding and Assisting in the Preparation of False Tax Returns.

According to testimony presented in the case, Rachel Watson and Susann Allen were tax preparers in Florence. Watson or Allen would prepare false documents for their clients which made it appear that their clients' income was substantially greater than any income earned by their clients.

In several cases Watson and Allen also claimed fraudulent dependents for their clients. Watson and Allen then prepared fraudulent tax returns based on the fraudulent income and/or fraudulent dependents. These returns allowed the clients to receive inflated tax refunds.

Sentencing for the case has not yet been scheduled. Both women face possible sentences of five years imprisonment and a fine of $250,000 on the conspiracy charge and three years imprisonment and a fine $100,000 on each count of aiding and assisting.