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Abbey Lee Miller indicted on fraud charges

Georgia entertainment fans may be interested to learn that Abby Lee Miller, who stars on the TV show "Dance Moms," has been charged with bankruptcy fraud and other offenses. The federal grand jury indictment, which was issued in Pennsylvania, claims Miller concealed income she earned while working on the popular Lifetime show.

Miller has been charged with 20 related counts of fraud. If she were convicted, she could face up to five years imprisonment and a $250,000 fine. Sources report that the amount she is alleged to have concealed is approximately $755.492.85. The investigation was conducted by Internal Revenue Service-Criminal Investigation agents, the FBI, and the U.S. Postal Inspection Service.

This case reportedly began when Miller filed a bankruptcy action claiming she was burdened by excessive debt. Although the bankruptcy action required Miller to file monthly operating reports with her creditors, prosecutors allege that she began withholding the true extent of her income taxes during this period. For example, although Miller reportedly claimed that work had become scarce for her, prosecutors say she renegotiated a contract with A&E and that a new season of her TV show was being produced. Media sources also say she admitted to not having disclosed $288,137.57 in 2013.

People who are under investigation by the IRS may wish to consult with an attorney who can organize a response. An attorney may be able to help a client prepare all the documentation that is necessary to provide a challenge to the audit. In some cases, an offer in compromise may be an advisable course to pursue.

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