North Idaho bookkeeper convicted of grand theft, tax evasion

A Rathdrum bookkeeper could face prison time and must pay restitution for income tax evasion and grand theft related to funds embezzled from clients. 

The Kootenai County District Court sentenced Julia Dennett to five years in prison for tax evasion, and ten years fixed and four years indeterminate for grand theft. In lieu of prison time, the judge has retained jurisdiction over her case for a period of one year while she completes mandatory rehabilitation programs. Dennett’s conviction also requires her to pay restitution to her victims and the Idaho State Tax Commission. 

Dennett owned an accounting firm that specialized in contract bookkeeping services. She took advantage of a client’s trust by misappropriating their funds. She also took funds from a parent-teacher organization while volunteering as the treasurer. Dennett then failed to report the embezzled income totaling $59,155 on her 2022 Idaho income tax return. 

“Illegal income is taxable in Idaho,” said Tax Commission Chairman Jeff McCray. “We’re committed to investigating all cases of tax fraud.” 

The Tax Commission discovers tax crime by routinely analyzing tax returns and conducting tax audits, as well as through tips from law enforcement, other state agencies, and the public. 

To report tax crime, email the Idaho State Tax Commission’s fraud unit at fraud@tax.idaho.gov or complete the online fraud referral form at tax.idaho.gov/fraud. You can choose to remain anonymous.

Copyright 2024 KMVT. All rights reserved.