Zero-Income Preparers Targeted By DOJ

[The Observer]

BNA Daily Tax Report
October 6, 2010

Tax Fraud: DOJ Seeks to Shut Down Arizona Tax Preparers

The Justice Department Oct. 5 announced that it asked the U.S. District Court for the District of Arizona to permanently bar a family of tax preparers from preparing federal income tax returns for others (United States v. Young, D. Ariz., No. 3:10-cv-08193-DGC, 10/4/10).

The complaint alleged that Deane and Shelia Young, husband and wife, and Shelia Young's father, Kennith Defoor, promoted fraudulent tax schemes through their companies, Accurate Consulting LLC, and D4 Accounting, Consulting, Tax Services Inc. The complaint also alleged that the Youngs and Defoor prepared at least 337 federal tax returns since 2001 that have requested a fraudulent refund, often in amounts exceeding $100,000.

In addition, the complaint alleged that the Youngs and Defoor asserted the fraudulent "zero-income' and "commercial redemption'tax schemes, and often submitted false Internal Revenue Service forms on behalf of their clients to report both fictitious interest income and tax withholdings.

[Judge Roy Bean]

Can indictments be far behind?

[Number Six]

It also looks like "American Tax Relief", is also in big bad trouble with the federal government. A few people are probably stupid enough to go from a scam tax preparer/bogus refund company to a scam tax problem resolution company. Most would have been a lot better off going down to the local IRS office or the local volunteer tax assistant. Let's hope the indictments come with some pre-dawn raids.