Woman caught cheating IRS, says her income was '0'

3:01 PM, Jan 23, 2013   |    comments
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CLEVELAND -- U.S. District Judge James S. Gwin sentenced a Vermilion woman who worked at the Ford Motor Company to five months in prison, five months of hone confinement and ordered her to pay restitution of unpaid taxes totaling $47,475 for the years 2004 through 2007.

According to court records, Terry E. Branco, 65, of Vermilion, previously pleaded guilty in a written plea agreement.

The sentence was imposed in Cleveland by the U.S. District Court.

In the agreement, she described her course of conduct over several years, including the following:

  • For tax years 2004 through 2007, Branco filed frivolous and false U.S. individual tax returns in which she stated that her total adjusted gross income for each year was zero dollars ($0)
  • Her actual total adjusted gross income was $109,403, $87,440, $93,277 and $113,845 for the 2004, 2005, 2006 and 2007 tax years, respectively.
  • Branco also signed a form in 2006 on which she falsely claimed she was not a resident of the United States.

In 2008, following an IRS audit and assessment of taxes owed, Branco sent a purported "commercial affidavit" to the IRS claiming that the IRS was not an agency of the United States, was "perpetuating a fraud," and was "not licensed to do business."

She also stated that failure to rebut the affidavit would result in the "filing of a commercial lien, involuntary bankruptcy and/or tort claim."

Branco then filed a Notice of Default and Affidavit of Notice with a county recorder in Utah, reflecting an intent to encumber real estate owned by an IRS employee whose name was on notices sent to her by the IRS, according to the plea agreement.


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