Adams, based in Princeton, La., and her company, based in Ringgold, La., "repeatedly and continually prepared tax returns that understated liabilities and overstated refunds," according to court documents.

In one case, the firm prepared returns for the two tax years for one customer showing $25,000 and $20,000 in losses from a client's business as an electrician even though the client did not have such a business. In another example, a return claimed $24,484 in unreimbursed employee business expenses even though the customer incurred no out-of-pocket expenses for her job,