Tax preparer for alleged drug dealers charged

WASILLA — The U.S. Attorney’s office Tuesday announced federal fraud charges against a local tax preparer, accused of filing false returns for drug dealers.

According to a press release issued Tuesday — coincidentally the deadline for filing federal income taxes — Rebecca Renae Powell, of Wasilla, was charged with six counts of preparing false tax returns.

The U.S. Attorney alleges that in 2007 Powell started doing taxes for a longtime friend who sold marijuana.

“Powell knowingly omitted income that her friend earned from selling marijuana. It is alleged that, because the drug income was not reported, Powell’s friend was able to claim the Earned Income Credit for tax years 2003 through 2007,” according to he press release.

Also in 2007, Powell allegedly did taxes for a second person, this one a marijuana and heroin dealer.

“In order to conceal this person’s illegal source income, Powell created the appearance that the income came from the individual’s legitimate business rather than from the sale of narcotics,” the press release states.

The U.S. Attorney alleges that deception included creating fake invoices, bills of sale and other business documents.

The charges carry up to three years in prison and a fine of up to $250,000.

The U.S. Attorney’s Office worked closely with the Internal Revenue Service’s criminal investigations division to put the case together.

Contact reporter Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.