Justice Department Sues Three Owners of Memphis-Area Tax Return Preparation Stores | WPN World People News

The United States filed a civil injunction suit in Memphis, Tennessee, to bar three individuals from owning or operating a tax return preparation business or preparing tax returns for others, the Justice Department announced.

Shandon Allen, Tabitha Tunstall and Shewanda Hamilton previously managed Mo’ Money Taxes stores in Memphis, but more recently have prepared tax returns under the names Southern King Taxes, Tabitha’s Taxes, LaQuita’s Professional Tax Service and Cash King Tax Service, according to the complaint. The United States previously obtained an injunction permanently barring the owners of Mo’ Money Taxes, Markey Granberry and Derrick Robinson, as well as a former Mo’ Money manager, Eumora Reese, from preparing tax returns for others and owning or operating a tax return preparation business.

The complaint alleges that the defendants and their employees prepare fraudulent tax returns that cause their customers to incorrectly report their federal tax liabilities and underpay their taxes. According to the complaint, the defendants and their employees prepare federal tax returns on which they falsely claim the Earned Income Tax Credit, improper filing status and bogus education credits. Additionally, the defendants and their employees allegedly improperly prepare tax returns using paystubs rather than W-2 forms, fabricate bogus W-2 forms and file tax returns without customers’ consent while charging deceptive and unconscionable fees, according to the suit.

Source: U.S. Department of Justice