Larry J. Heath, a Cartersville, Ga.-area tax preparer, has agreed to a civil injunction that bars him from preparing federal tax returns for others. The injunction also applies to Heath's businesses, Heath & Hames Income Tax and Heath's Income Tax II. A case against his brother, Andrew Heath, is pending.Larry J. Heath agreed to the injunction sought by the Justice Department without admitting to the allegations.
The government alleged that Heath concocted bogus expenses, education credits, business expenses and charitable contributions to reduce the amount of tax his clients owed. His electronic filing identification number was suspended because of the large number of erroneous returns he prepared. But he then sold his business to two women, but continued to prepare and file returns while using their EFINs
An audit found that 94.5 percent of tax returns prepared by the Heaths required IRS adjustments. And from 2007 through 2010, the number of returns they prepared rose from 2,677 in 2007 to 10,399 in 2010. The government alleged the amount of lost tax revenue was around $108 million.
