The Justice Department has asked a federal court to bar Cynthia H. Carter, who does business as Cynthia's Tax Service in Columbus, Miss., from preparing federal tax returns for others. Carter is accused of preparing returns that reported false income and expenses and tax credits , including the first-time-homebuyer credits.

The government complaint alleges that Carter claimed the first-time-homebuyer credit on her customers' returns even though the customers had not bought new homes. She also allegedly fabricated deductions for employee business expenses and inflated earned income tax credits on her customers' returns. The government may have lost $4.25 million in revenue as a result of her actions/ Last modified on Sunday, 02 June 2013
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