- Parent Category: The Progressive Accountant - Tax
- Thursday, 05 December 2013
- Published Date
- Written by The Progressive Accountant
The Department of Justice wants to stop a Memphis, Tenn.-based tax preparer and her companies from preparing federal returns for others. The agency seeks to bar Stephanie Edmond and her businesses, the Tax Factory and Tax Factory Enterprise from the tax preparation business. Edmonds and the companies were reported to have prepared more than 9,000 returns since 2011.
The federal government alleges Edmonds created fake businesses for her clients and claimed phony expenses for them on tax returns. She is also accused of improperly claiming the earned income tax credit for some customers. Edmond's actions are alleged to have cost the government more than $9.7 million
In one case, the complaint alleges The Tax Factory prepared two returns for a customer which claimed bogus business losses of approximately $30,000 for each of two years, resulting in an improper refund of about $7,000 in each year.