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Texas Preparer Gets Three Years

A 45-year-old Texas-based tax preparer has been sentenced to three years in prison and ordered to pay $6.7 million in restitution to the United States.

Bachary Rushid McGruder, owner of M&M Enterprises and Consulting, pleaded guilty in November to aiding and assisting in the preparation of more than 1,000 false tax returns.

McGruder charged his clients fees of as much as $2,800 each for preparing their returns. He used techniques such as fictitious Schedule A itemized deductions including  gifts, to charity, unreimbursed employee expenses and home mortgage interest and false Schedule C business losses; and f Residential Energy Credits.

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