Tag Archives: Turbotax gone wild

$2 million tax refund equals 66 months in prison

She could have been Turbotax‘s Poster Child For Getting Your Maximum Refund–“I used Turbotax and got a $2.1 million refund!”

The only problem is that there wasn’t much truthful about the Oregon tax return filed by Krystle Marie Reyes of Salem once you got to the lines below her name and the address where you could send her seven-figure refund.

Reyes pleaded guilty July 24 and was sentenced to 66 months in prison for tax evasion and felony theft.

The sentencing closes a case featuring someone who in recent years earned less than $15,000 annually, yet was able to get a refund of more than $2 million on a Visa debit card by filing a return showing more than $3 million in income. After she got the refund, she then reported losing the debit card twice, which finally got the attention of card issuer Intuit. (Hey, let’s put another link to our good friends at Turbotax right here.)

What’s still open, however, is how a return with such eye-popping numbers made it through the Oregon Department of Revenue. As Michelle Cole of The Oregonian, who has been all over this story, reported, four employees with the department were either demoted or subject to “disciplinary action” following an internal investigation. Names of the state employees involved were shielded under the rubric of “personnel” matters, and apparently no one is getting fired after the biggest tax fraud in state history.