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A former tax preparer arrested by SCDOR agents in 2021 for preparing fraudulent state tax returns was sentenced to two years of probation last Friday, November 8.

The SCDOR charged Clarella Cade of Spartanburg County with 16 counts of making or assisting in the preparation of false or fraudulent tax returns. According to the warrants, Cade added fraudulent businesses expenses totaling $422,000 for all the returns.

Cade did not admit to those allegations but acknowledged the presentation of that evidence would probably result in her conviction for two counts of willful preparation of a fraudulent tax return. The two counts represent two years' worth of fraudulent returns. She entered an Alford plea, in which she did not admit to any crimes but agreed the state had sufficient evidence to convict her at trial.

Circuit Judge Alex Kinlaw, Jr. sentenced Cade to three years in prison and a $1,000 fine, suspended to two years of probation. According to her lawyer, Cade no longer prepares tax returns for others.

The SCDOR is committed to the fair administration of tax laws. By taking enforcement action against noncompliant taxpayers, the Department seeks to prevent unfairly increasing the tax burden on those who do comply.

If you suspect or know of anyone or a business that has committed a state tax crime, such as tax evasion or tax fraud, contact SCDOR Criminal Investigation and submit a Tax Violation Complaint Form (CID-27) to [email protected] or mail it to:

South Carolina Department of Revenue
Attn: Fraud Advisor
2070 Northbrook Blvd, Suite B7
North Charleston, SC 29406

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