As I have written about previously, tax return preparers can face both civil and criminal penalties for preparing false or fraudulent tax returns. One such tax return preparer company, Mo’ Money Taxes, is now dealing with a civil injunction lawsuit, which was filed against them in Nashville by the U.S. Attorney’s Office in Middle Tennessee, according to published reports.
The Justice Department’s lawsuit claims that defendants Toney Fields and Trumekia Shaw did “intentionally prepare and file fraudulent federal income tax returns to obtain improper tax refunds for customers.” Claimed tax losses by the Government could exceed $5 million in tax year 2011. Some of the alleged errors committed by employees of Mo’ Money Taxes include: using taxpayers’ end-of-the-year pay stubs (instead of W-2 forms) to assist in preparing tax returns; manufacturing fake W-2 forms; and claiming false tax credits for child tax credits, incorrect number of dependents, and false charitable donations.
This civil injunction in Nashville is the latest legal battle against Mo’ Money Taxes, and follows the arrest of franchise owner Jimi Clark and four Mo’ Money employees in October, 2012, for conspiracy to commit tax fraud by falsely claiming educational tax credits on 47 returns filed in 2009. Additionally, the Memphis-based company has hundreds of people claiming that they never received their tax refund checks.