Woman convicted
of tax fraud gets
probation, fine

She's the first person
prosecuted under a
1995 state law

By Linda Hosek
Star-Bulletin

The first person prosecuted under a 1995 state law to discourage tax fraud won't go to jail and got a break on a fine that could have totaled $1 million, her attorney says.

Circuit Judge Melvin Soong yesterday sentenced Helen Patlingrao to five years probation for theft and a $5,000 fine, reflecting $500 for each of 10 counts of tax fraud.

The fraud offense carries a prison term of up to three years in prison and a fine of up to $100,000.

Soong also ordered Patlingrao to perform 100 hours of community service and said she could prepare state returns only under the supervision of a licensed practitioner.

Patlingrao, a trained tax preparer who started by preparing returns for friends, said she was sorry for getting people in trouble and said she didn't intend to steal.

Deputy Attorney General Dwight Nadamoto said Patlingrao's false returns for 1995 and 1996 caused the state to overpay her clients more than $50,000, resulting in the theft charge.

As an example of her crimes, Nadamoto said she filed separate returns for a married couple, claiming each as a household head.

In another, he said she filed separate returns for a married couple seeking a low-income renter's credit. He said she recorded a credit for the one who made less money.

"We indicted her prior to April," Nadamoto said. "We want tax preparers to know we would prosecute."

Deputy Public Defender William Jameson said Patlingrao copied the strategy of another tax preparer and figured it was OK when neither was audited.

Jameson said Soong didn't believe her and felt she knew enough to know what she was doing was wrong.

He said Soong also refused to accept a deferred acceptance of a no contest plea that would have erased the charges against her if she stays out of trouble.

Jameson said Patlingrao, who pleaded no contest to the offenses, charged only about $25 to $50 for each return.

"She's learned her lessons," he said, describing the $5,000 fine as "a break."