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February 17, 11
NEWS / Arkansas Woman Barred from Preparing Federal Tax Returns for OthersWASHINGTON – An Arkansas woman who operates Foster’s Income Tax Service in Knobel, Ark., has been permanently barred from preparing federal tax returns for others, the Justice Department announced today. The injunction order against Betty J. Foster, to which she consented, was entered by Judge J. Leon Holmes of the U.S. District Court for the Eastern District of Arkansas. The government’s complaint alleges that Foster, through her company, prepares federal income tax returns for her customers that claim losses for non-existent businesses, as well as inflated or fabricated deductions, in order to understate tax liabilities unlawfully. According to the complaint, Foster has been preparing tax returns for a fee for approximately 25 years, and she consistently prepares approximately 450 tax returns per year. The government estimates that Foster’s unlawful return preparation activity has cost the United States $5 million or more for the 2007 through 2009 tax years. This civil injunction action is part of the Justice Department’s nationwide efforts to halt abusive tax scams and the preparation of fraudulent federal tax returns. Since 2001, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of false returns. More information about these cases and the Tax Division can be found at www.usdoj.gov/tax. http://www.justice.gov/opa/pr/2011/February/11-tax-203.html |
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