Tennessee tax preparer pleads guilty in IRS fraud case tied to $4.1 million loss

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Tennessee tax preparer IRS fraud

Highlights

Lynette Hogue pleads guilty to aiding and assisting in false tax return filing and failing to file her own tax return, causing a $4.1 million IRS loss.
Hogue faces sentencing on Jan. 15, 2027, with a maximum of three years in prison for false returns and one year for failure to file.
The Justice Department's Fraud Division, supporting President Trump's Task Force to Eliminate Fraud, prioritizes prosecuting federal benefit program fraud.

Guilty plea and charges in Tennessee tax case

As reported by U.S. Department of Justice, Lynette Hogue pleads guilty to one count of willfully aiding and assisting the filing of a false tax return and one count of willfully failing to file an individual tax return.

Court documents and statements made in court say Hogue prepared and filed false income tax returns for clients of the tax preparation business where she worked. Prosecutors say the returns included fraudulent items that generated refunds the clients were not entitled to receive, while Hogue also failed to file her own returns despite earning substantial income and being legally required to do so.

The Justice Department says Hogue's conduct causes a loss of $4.1 million to the IRS. She is scheduled to be sentenced on Jan. 15, 2027, and faces a maximum penalty of three years in prison on the false return count and one year in prison on the failure-to-file count.

Enforcement focus and next steps

A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Colin McDonald of the Justice Department's National Fraud Enforcement Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announce the case.

IRS Criminal Investigation is investigating the matter. Trial Attorneys Isaiah Boyd III and Matthew C. Hicks of the Fraud Division's Tax Section, along with Assistant U.S. Attorney Carroll L. André III for the Western District of Tennessee, are prosecuting the case.

The department also says its Fraud Division, announced on April 7, is focused on investigating and prosecuting fraud against the public. It says that effort supports President Trump's Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance, which targets fraud, waste and abuse within federal benefit programs.

Our earlier article on Apate’s AI scam-baiting agents explained how the Australian startup uses automated “undercover” AI personas to engage scammers and gather actionable fraud intelligence before real victims lose money. We also noted that banks, telecoms and government agencies are adopting these tools as AI-enabled scams and impersonation tactics grow, pushing institutions to strengthen prevention and investigative capabilities.

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