A North Charleston woman is among 31 individuals recently indicted in South Carolina for tax fraud following an extensive investigation by the South Carolina Department of Revenue (SCDOR). Abigail McKelvey, 33, faces several charges related to the fraudulent claiming of tax credits, which the SCDOR says led to tax refunds totaling over $1 million. McKelvey was the only person indicted from the Lowcountry in this state-wide investigation.
Details of the Charges
McKelvey has been charged with willful preparation of a fraudulent tax return, furnishing a false tax document, and obtaining goods by false pretenses with a value between $2,000 and $10,000, according to SCDOR officials. The charges stem from an investigation into fraudulent claims made for the Milk Tax Credit and the Anhydrous Ammonia Additive Tax Credit.
The investigation revealed that McKelvey and others allegedly falsely claimed these tax credits on returns for the tax years 2021 through 2024. The fraud was primarily tied to individuals improperly claiming refundable credits they were not entitled to, leading to tax refunds ranging from $1,000 to $30,000 per person.
Fraudulent Tax Credit Claims
The Milk Tax Credit is intended for dairy farmers who produce at least 500,000 pounds of milk for sale. Eligible farmers can receive $10,000 for the first 500,000 pounds produced, and an additional $5,000 for each additional 500,000 pounds. Thirteen of the 31 individuals indicted fraudulently claimed this credit, with the amounts ranging from $3,853 to $70,000.
Similarly, the Anhydrous Ammonia Additive Tax Credit applies to farmers who use anhydrous ammonia for agricultural purposes and purchase an additive to prevent the ammonia from being converted to methamphetamine. Nineteen of the indicted individuals wrongfully claimed this credit, with amounts ranging from $1,000 to $28,000.
In total, the illegal claims resulted in over $1 million in refunds being issued to the defendants.
Legal Penalties
The charges against McKelvey carry significant penalties. For the willful preparation of a fraudulent tax return, the penalty can be up to five years in prison and/or a fine of up to $500. A charge of furnishing a false tax document can result in up to one year in prison and/or a fine of up to $5,000. The charge of obtaining goods by false pretenses for amounts between $2,000 and $10,000 carries up to five years in prison.
Statement from SCDOR
SCDOR Director Hartley Powell emphasized the agency’s commitment to upholding the state’s tax laws, stating, “The SCDOR is committed to the fair administration of South Carolina’s tax laws. Those who illegally claim tax credits must be prosecuted.”
Abigail McKelvey’s indictment is part of a broader crackdown on fraudulent tax claims in South Carolina. The SCDOR’s ongoing efforts to identify and prosecute tax fraud cases underscore the importance of compliance with tax laws. As the case progresses, McKelvey and others involved in the fraudulent claims could face severe legal consequences, including prison time and substantial fines.
