Date: July 26, 2023 Contact: newsroom@ci.irs.gov A Florida woman pleaded guilty today to aiding and assisting in the preparation of a false tax return. According to court documents, Iona Coates of Orange Park, Florida, owned and operated Bits & Bytes Accounting Services Inc., a tax preparation and bookkeeping services company located in Jacksonville. Between 2015 and 2020, Coates reported wages and tax withholdings from Bits & Bytes on her personal tax returns, including $42,500 of withholdings on her 2017 return. However, as Coates knew, Bits & Bytes did not withhold and pay over any taxes to the IRS during those years. In total, between 2015 and 2020, Coates claimed false withholdings of $228,788. Coates faces a maximum penalty of three years in prison, and also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division and United States Attorney Roger B. Handberg for the Middle District of Florida made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorneys Kevin Schneider and Wilson Stamm of the Justice Department's Tax Division are prosecuting the case.
