Fairfield County tax preparer charged with fraud and income tax evasion

Fairfield…South Carolina Department of Revenue investigators arrested a Fairfield County tax preparer today and charged her with multiple counts of tax fraud and income tax evasion.

Elizabeth Trapp Smith, 43, owner of Liz Tax Service, is being held at the Fairfield County Detention Center pending a bond hearing. Smith was charged with nine counts of assisting in the preparation of a fraudulent tax return and one count of income tax evasion.

Smith is accused of overstating deductions and/or incorrect state withholdings on tax returns she prepared for her clients, thereby, generating larger refunds. The DOR investigation showed that clients were unaware of Smith’s activities. She also is accused of preparing and filing her own return and likewise overstating deductions and incorrect state withholding amounts. No additional arrests are anticipated.

Smith is facing up to 50 years in prison and fines of up to $14,500 if convicted.