The Department of Justice has asked a federal court to shut down a tax office in Nashville, Tenn., that allegedly prepared returns before tax season started. An injunction is being sought against Mo' Money Taxes licensee Toney Fields and co-defendant, Trumekia Shaw, who allegedly prepared tax returns based on pay stubs. It was only the latest in a string of problems and allegations surrounding the Mo Money tax preparation chain.
The two allegedly opened their office in December and utilized end-of-year pay stubs to prepare returns before employers issued W-2 forms in violation of rules of the Internal Revenue Service. They also are accused of creating fake W-2s to file with returns and of inflating or claiming fax tax credits, including the earned-income credit, in order to get larger refunds for their customers, along with utilizing false filing statuses and bogus charitable contributions. The IRS estimates it lost more than $15 million in tax revenue on more than 1,100 returns prepared in 2011.
The entire story can be found at http://www.theprogressiveaccountant.com/tax/justice-seeks-to-shut-down-early-bird-preparer.html
Also, stay tuned because these two preparers may make the legendary Tax Preparers' Hall of Shame in 2013. The preparers have to be proven guilty before joining the club.