Annetta Powell, Tax Return Preparation Fraud, Michigan 2023

Annetta Powell, a resident of Michigan, has been found guilty of orchestrating a wide-ranging tax return preparation fraud scheme that spanned nearly a decade. A federal court in Detroit has permanently barred Powell and her seven tax preparation-related businesses from preparing federal tax returns for others.

The court’s decision follows a 12-day trial held from November 2023 to January 2024. During the trial, it was revealed that Powell and her businesses, which operated under the names ‘The Tax Experts’ and ‘Speedy Tax Stores,’ had a long history of violating IRS rules and regulations.

The court found that Powell’s preparation of fraudulent tax returns was widespread, occurring across five stores in Detroit, Pontiac, and Flint. The harm caused by her scheme was severe and widespread, with the court noting that Powell’s stores routinely violated IRS rules and regulations.

Powell was also found to have taken active steps to thwart the IRS investigation, including altering customers’ files and returns and manipulating the use of an Electronic Filing Identification Number (EFIN). The court concluded that Powell ‘would likely find new ways to prepare fraudulent returns’ if she were not permanently barred from doing so.

The court has ordered Powell and her businesses to disgorge $689,797.91, representing the ill-gotten gains from her fraudulent tax return preparation scheme. The IRS has launched an investigation into Powell’s activities and has taken steps to educate taxpayers on how to choose a reputable tax return preparer.

Deputy Assistant Attorney General David A. Hubbert of the Tax Division made the announcement. The case was prosecuted by trial attorneys Bradley Sarnell, Elizabeth Kirby, Daniel Applegate, Thelma Lizama, Eric Ashby II, and Steven Shashy of the Tax Division.

Taxpayers are advised to remain vigilant against unscrupulous tax preparers and to seek guidance from the IRS on how to choose a reputable return preparer. The IRS offers a free directory of federal tax preparers and provides information on the credentials and qualifications that taxpayers should seek from their return preparer.

Related Federal Cases