Former Janesville woman sentenced for tax fraud

Collins sentenced to 30 months in prison, restitution

Published On: Dec 24 2013 08:56:21 AM CST   Updated On: Oct 04 2013 03:16:52 PM CDT
Court generic

A former Janesville woman who prepared tax returns for family and friends is sentenced for filing false tax claims.

Rosella Collins, 46, of Hollywood, Fla., was sentenced in Madison on Wednesday to 30 months in federal prison and ordered to pay $224,293 in restitution to the Internal Revenue Service and the Wisconsin Department of Revenue. She will also be placed on supervised release for three years. She pleaded guilty in June to filing false tax claims.

Prosecutors said Collins prepared accurate returns that she showed to her clients but never submitted to the IRS or the Wisconsin Department of Revenue. She then prepared false returns with fictitious business expenses, withholdings and other falsities that inflated the amount of the tax refund.

Collins directed that the electronic payment of the refund be split into two amounts to go to two different accounts, according to prosecutors. One payment would go to the client and reflected the amount the client expected to see from an accurately prepared return. The remainder went to an account belonging to Collins.

Collins was also convicted in Florida of fraudulently using the identities of employees, grand theft and credit card fraud and is currently serving a three-year state prison sentence, according to prosecutors.