South Carolina Department of Revenue (SCDOR) agents arrested Claire Coward Allen, 57, of Latta, SC, on five counts of willfully preparing false returns. Allen was a resident of Florence County at the time of the alleged crimes.
For tax years 2014 through 2018, Allen prepared and filed joint South Carolina Income Tax returns for her spouse and herself. Through their investigation, SCDOR agents determined that during this time period Allen reported a combined total of $293,882 in false Schedule A and Scheduled C deductions. This was done without the consent or knowledge of her spouse and resulted in the failure to pay approximately $26,352 in Income Tax due to the state.
Upon arrest, Allen was taken to the Florence County Detention Center pending a bond hearing. If convicted, Allen faces a maximum of five years in prison and/or $500 per count plus the cost of prosecution.
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 criminalinvestigation@dor.sc.gov or mail it to: South Carolina Department of Revenue, Attn: Fraud Advisor, 181 East Evans Street, Suite 5, Florence, SC 29506.