Nov 20, 2012

Tax Preparer Hall of Shame: Michigan Lawyer Permanently Barred for Tax Fraud Scheme



The new inductee of the Tax Preparers' Hall of Shame goes to a........LAWYER!

A federal court has permanently barred a Michigan lawyer, Tammy Daniels of Farmington Hills, from promoting an alleged tax fraud scheme. The civil injunction order, to which Daniels consented without admitting the allegations against her, was signed by Judge Paul D. Borman of the U.S. District Court for the Eastern District of Michigan. In August the court enjoined Daniels’s co-defendants, Damian and Holly Jackson, from preparing federal tax returns for others and promoting the scheme.

The government complaint in the civil injunction lawsuit alleged that the Jacksons and their business, Diamond & Associates Enterprises LLC, operated Diamond Tax Services and promoted a scheme involving the preparation of fraudulent federal income tax returns for customers seeking large tax refunds based on a frivolous tax-defier theory called “redemption” or “commercial redemption.” The suit alleged that tax returns prepared for at least 182 customers under the auspices of Diamond Tax Services sought over $29 million in fraudulent refunds by falsely reporting large amounts of tax withheld on bogus Internal Revenue Service (IRS) 1099 Forms.

Congrats goes to Tammy for being the first lawyer inducted! Let's hope that you paid off your law school student loan bills. Better yet, maybe the former 182 customers will feel sorry for you and help you out. I wouldn't bet on it!

No comments: