The federal government said their actions cost the IRS more than $3.3 million in taxes. Bowman was sentenced to 36 months in prison; Mack, 30 months. They were also ordered to pay $210,442 in restitution. Both pleaded guilty in the fall 2021.
The couple was accused of preparing and filing fraudulent tax returns through Mack's business, Phase US Tax Services from January 2015 through April 2019.
Among the methods they used were preparing phony Schedule C losses and Schedule A itemized deductions, for two real travel businesses,, Phase 4 Global and PlanNet, for clients who had no association with those companies. The companies also did not know Mack claimed expenses associated with their operations.
Mack and Bowman hid the Schedule C losses by omitting pages in the paper copy of tax returns given to clients and submitted bogus documents to the IRS for clients who were being audited, including fake mileage logs.
In her 2014 personal tax return, Mack also failed to report income and expenses from the tax business and failed to file personal returns for 2015, 2016, 2017, and 2018.