On February 14, 2025, the Department of Justice announced that a Nevada woman pleaded guilty to conspiracy to defraud the United States in connection with COVID-19-related employment tax credits.
According to court documents, Candies Goode-McCoy, of Las Vegas, was accused of working with others to submit tax returns that sought employment tax credits under the employee retention credit (ERC) and the paid sick and family leave credit. Between June 2022 and September 2023, the government alleged that she filed approximately 1,227 returns on behalf of her businesses and others, requesting over $98 million in refunds. The IRS approved and paid approximately $33 million before identifying concerns with certain claims.
The government further alleged that Goode-McCoy personally received over $1.3 million in refunds and was paid about $800,000 by individuals for whom she submitted claims. Prosecutors argued that the businesses and individuals were not eligible for the credits in the amounts claimed and that the funds were used for personal expenses, including purchases, travel, and gambling.
The ERC and paid leave credit were enacted as part of COVID-19 relief efforts to support businesses impacted by the pandemic. These credits were designed to assist employers in covering payroll costs and retaining employees during a period of economic uncertainty. In recent years, the IRS has increased enforcement efforts related to these credits, leading to audits, investigations, and prosecutions of business owners and tax preparers.
Goode-McCoy is scheduled for sentencing on February 23, 2026. While she faces up to 10 years in prison, the final sentence will be determined by a federal judge based on various factors, including advisory sentencing guidelines.
Federal enforcement efforts surrounding COVID-19 relief programs have led to increased scrutiny of tax credit claims, and many business owners have found themselves facing allegations related to these filings. Those navigating government inquiries or enforcement actions should seek experienced legal counsel.
The attorneys at Chilivis Grubman have extensive experience representing individuals and businesses in white-collar investigations and enforcement matters. If you are facing allegations related to employment tax credits or other government enforcement actions, contact us today to discuss your options.