Arizona tax preparer convicted of filing false returns for clients

An Arizona tax preparer was convicted of 22 counts of preparing false federal income tax returns for clients who did not know she had included false deductions, federal prosecutors said.

Twelve clients testified at a Tucson trial that they did not have the deductions Darlene Musgrove, 68, included on their returns and were unaware of the false claims. They also said their refunds were larger than those they had received in previous years.

Prosecutors argued that Musgrove sought larger refunds for her clients to encourage repeat business.

The 22 false returns resulted in a total tax loss of about $127,166, according to the U.S. Attorney’s Office for the District of Arizona.

Musgrove is facing a maximum punishment of three years in prison, a $100,000 fine or both when she is sentenced on Feb. 23, 2027.

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