“Bar” None: Maryland Woman Helps Prisoners Commit Tax Crimes

Melanie Taylor should feel comfortable behind bars: her participation in a tax fraud scheme with prisoners will likely land her in prison.

Taylor has pleaded guilty to conspiracy to tax fraud charges stemming from a scheme that she ran with inmates at the Maryland Department of Corrections and other prisons. The tax losses are said to have totaled more than $350,000.

From 2004 to 2007, Taylor received and mailed tax returns to the IRS on behalf of prison inmates. She made money for herself and the inmates by claiming refunds that were not actually due; those returns were directly deposited into her bank account. To make the scheme more viable, Taylor used a fake name to and received an Employee Identification Number (EIN) for a false construction company.

Taylor passed along some of the funds to the inmates in the form of cash or items for their use. She kept the remainder for herself.

Taylor will be sentenced in federal court in July. She faces a maximum sentence of 10 years in federal prison… but at least she’ll be somewhat familiar with life behind bars!

Kelly Phillips Erb

Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.

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