Alabama Preparer Shut Down
A federal court has permanently barred Lakeisha Pearson of Birmingham, Ala., from preparing federal tax returns for others. Pearson operated under the names, LGS Tax Service, PositiveEndeavors and AGA Tax Service. Pearson was ordered to provide a copy of the injunction that bars her work to each person for whom she has prepared a federal tax return since Jan. 1, 2008.
Pearson was found to have repeatedly preparer returns with false or inflated earned income tax credit claims that generatied large refunds for her clients. Her actions were estimated to have cost the United States as much a $28.3 million. She was also failed to compy with requirements to determine the eligibility of clients for the EITC even though she had been assessed moe than $10,000 by the Internal Revenue Service for such failures.
