Atlanta woman sentenced for filing more than $1 million in false tax returns, DOJ says

ATLANTA — The U.S. Department of Justice announced an Atlanta woman was sentenced to two years in prison for filing false tax returns.

According to officials, Angela Brady, 51, filed false tax returns for her IT consulting business, “falsely claiming she incurred millions of dollars in contract labor expenses,” while seeking and receiving refunds during tax season despite making millions of dollars in income.

U.S. Attorney Ryan K. Buchanan said Brady used her business savvy to skirt tax obligations for years.

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Explaining the case, Buchanan said Brady operated a software consulting business, using contracted workers from India rather than full-time employees. While Brady paid her contractors via Paypal, she also claimed to have incurred millions of dollars more than she spent paying contractors between 2013 and 2018.

Due to her claim of incurring millions in wage payments, Brady “was able to reduce her taxable income by her claimed business expenses, and in some years, obtained a tax refund from the IRS despite earning more than $1 million in income,” Buchanan said.

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USDOJ said she did this by providing false spreadsheets to her tax preparer, as well as a false spreadsheet to agents with the Internal Revenue Service, resulting in close to $1.1 million in unpaid taxes.

“As people prepare for the 2024 tax season, this sentencing serves as an important reminder that willfully filing false tax returns is defrauding the U.S. government,” Lisa Fontanette, Assistant Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office, said. “IRS-Criminal Investigation in partnership with the US Attorney’s Office is ensuring those who do defraud the government are held accountable.”

Now sentenced, Brady will serve two years and nine months in prison, followed by a year of supervised release. She’ll also have to pay $1.08 million in restitution. Brady pled guilty on June 12, according to officials.

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