U.S. Seeks to Shut Down Preparer
The Department of Justice is seeking to bar Larry Carnell Dixon Sr. and his firm, Dixon's Tax Service, from preparing federal tax returns for others. An injunction is being sought against the Zachary, La.-based preparer alleging that he used inflated and fake business expense deductions for real or fictitious businesses on his clients' returns to reduce their tax liabilities or increase refunds.
An investigation by the Internal Revenue service found that 194 out of 198 of the Dixon-prepared returns audited by the IRS had tax deficiencies and that Dixon's conduct may have cost the government as much as $39 million. The action seeks a list of all customers for whom the firm prepared returns after Jan. 1, 2006.
