Middleton and another defendant, George Jenkins, prepared returns through MBM Tax and Accounting Service. The Internal Revenue Service found that of 842 returns it examined that had been prepared by duo, more than 93 percent required an adjust to the clients taxes. The IRS estimates the lost taxes at more than $55 million. Action is pending against Jenkins by the Department of Justice. Middleton consented to the injunction.
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South Carolina Preparer Banned
A Charleston, S.C.-based tax preparer has been barred from preparing tax returns for others after he was accused of creating false copies of Form 1099 for customers. The action was taken against Stacy Middleton, who is also accused of creating fake income to enable clients to claim the Earned Income Tax Credit.
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