Wednesday, March 23, 2005

More Tax

Until April 15, this blog title is likely to be common, as the IRS and DOJ join together to see what they can do to encourage the filing and payment of taxes on April 15th.   But this one is a bit different.  Instead of the focus being on the taxpayer, it  is on the tax preparer.  And the charges are not directly related to the filing of a fraudulent return. 

In a recent press release, the DOJ reports of an indictment of an individual for:

"six counts of criminal contempt for violating two injunction orders entered against him by the U.S. District Court in Grand Rapids. The injunction orders, entered October 27, 2003 and March 15, 2004, each prohibited [this individual] from giving tax advice and providing other tax services for compensation, acting as an income tax return preparer, promoting trusts, and representing clients. Evidence offered in support of the government’s request for the injunctions established that [this individual] had prepared fraudulent returns that understated income and tax for frivolous reasons."

"The indictment alleges that after the injunction orders were entered, [the accused] provided tax advice and other tax services for compensation and acted as an income tax return preparer, preparing six tax returns for five different taxpayers. The indictment also alleges that [he] falsely told customers he could legally prepare tax returns provided that he did not sign them or his customers copied the returns onto new forms."

An interesting note included in the government press release is that  the accused "is the second tax return preparer indicted this month for violating an injunction."

(esp)

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