State Revenue
Commissioner Julie P. Magee Announces Conviction in Tax Evasion/State Ethics
Violation Case
Montgomery, Oct. 14, 2014—State Revenue
Commissioner Julie P. Magee announced today the conviction and
sentencing of Shirley Jean Walters, on charges of state income tax evasion and
a state ethics violation for using her position for personal gain. Walters was a personnel assistant employed by
the Alabama Department of Corrections until she resigned in 2014 after her
indictment. She previously served as a
payroll clerk at Tutwiler Prison in Wetumpka.
Walters’ pleas of guilty to
the two felony counts were accepted by Montgomery Presiding Circuit Court Judge
Charles Price and the convictions were adjudicated on Sept. 12, 2014. She was convicted on one count of state
income evasion under Section 40-29-110, Code
of Alabama 1975 for tax year 2008, and on one count of using her position
as a public employee to obtain personal gain in violation of the state ethics
laws, Section 36-25-5 (a) , Code of
Alabama 1975.
Walters used her position
to change her Alabama income tax withholding status to “exempt” or “zero
withholding” for her state wages in the state payroll and personnel computer
system, the Government Human Resources System (GHRS). She was able to avoid having income tax
withheld from bi-monthly state paychecks.
Since she did not file state income tax returns and had zero
withholding, she paid virtually no Alabama income tax.
Walters was
sentenced on Oct. 10, 2014 by Judge Price to serve forty-six (46) months in the
penitentiary, suspended, with
supervised probation. She was also
ordered to pay restitution in the amount of $11,631.51, plus interest and penalties
for the tax years involved.
“It is a crime to falsely claim exemption from
state income tax withholding or to fraudulently exaggerate exemptions on income
withholding tax forms or payroll records,” said Commissioner Magee. When combined with failing to file a tax
return and/or to pay income taxes it is a felony. Ms. Walters was in a special position of
trust as a personnel assistant and violated that trust for her own personal
gain. This is yet another in many cases
we have pursued for income tax evasion perpetrated in this manner. We expect more investigations and
prosecutions of employees in both the private and public sector in the coming
months for similar crimes.”
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Media contact for more
information:
ADOR Media Affairs Office
Amanda Collier
Telephone: (334) 242-1390; FAX: (334) 242-0550
WEBSITE address: www.revenue.alabama.gov