Former Sacramento Auto Dealer Bookkeeper Faces Added State Income Tax Charges
Released: May 22, 2009
Sacramento – A Sacramento woman surrendered to authorities on charges of four felony counts of filing fraudulent state income tax returns and one felony count of state income tax evasion, the Franchise Tax Board (FTB) announced.
Mary Ann Machado, 42, was a bookkeeper for a large Sacramento auto dealer group. Last month, Machado pleaded no contest to two felony charges for allegedly embezzling more than $400,000 from her former employer from 2004 - 2007. Machado faces additional charges related to her alleged failure to claim the stolen funds on her state income tax returns.
According to court documents, Machado abused her position of trust by taking cash and using company checks to deposit funds into her bank account. Machado used this money for living expenses, paying her credit cards, and purchasing expensive designer handbags. In addition, Machado failed to claim this illegal income on her 2004 - 2007 state income tax returns. All income is taxable including income from illegal sources. Machado owes the state more than $64,000 in unpaid tax, penalties, and interest. The cost of the investigation will also be added to this figure.
Each tax count carries a maximum sentence of three years in state prison.
Underreporting income or overstating deductions are part of the $6.5 billion tax gap California faces each year. The tax gap is defined as the difference between the tax that is owed and the tax that is paid.
Machado was booked into the Sacramento County Jail. Her bail is set at $20,000. Her arraignment date has not been scheduled.
Sacramento County Deputy District Attorney Lani Biafore is prosecuting the case. This is a joint investigation between the Sacramento District Attorney’s Office and FTB.
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