Battle Creek Woman Sentenced For Avoiding Taxes On Stolen Money

A Battle Creek woman will spend some time in prison for faking her taxes as she stole millions from her employer.

MLive says that 52-year-old Tammy Burdette was the office manager at VHC, PC from 2009 to 2012, and investigators say that she wrote herself checks and then spent the money on gambling; all told, she stole $3 million. The charges in this case actually stemmed from the fact that she failed to report this stolen money as income on her tax returns; the IRS says that she “deprived the American taxpayer” of almost $570,000 in taxes.

As odd as it might sound, according to the IRS you are required to report income gained through illegal activities:

Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 21, or on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) if from your self-employment activity.

You also need to report property that you steal:

If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.

Burdette was sentenced to 36 months in prison in US District Court in Grand Rapids; she was also ordered to pay restitution for those taxes she failed to pay. It's unclear if she will also be charged with embezzlement for the $3 million authorities say she stole.