Local Tax Preparer Handed Down Harsh Sentence for Flouting Court Order

In a shocking turn of events, Barbara Lynn McCarthy, a tax return preparer formerly operating as Barbara’s Tax Service, has been held in contempt of court for violating a prior order that prohibited her from preparing federal income tax returns. On August 11, 2024, the federal court in Greenbelt, Maryland, conducted a hearing to determine if McCarthy had indeed prepared tax returns in contravention of the court’s injunction.

The court’s findings were unequivocal: McCarthy had continued to prepare tax returns despite the explicit ban. This egregious breach of trust has left many in the community outraged and seeking justice. The consequences of McCarthy’s actions are severe, with the court ordering her to return the portions of her customers’ tax refunds that she had diverted to her own account.

Furthermore, McCarthy has been ordered to pay the United States a sum of $2,500 as a penalty for her actions. This financial penalty is a testament to the gravity of her crimes and serves as a warning to others who may consider engaging in similar behavior. In addition to these financial repercussions, McCarthy has been directed to provide the government with a list of all tax returns she prepared since the injunction was put in place.

The ramifications of tax return preparer fraud are far-reaching and can have devastating consequences for unsuspecting individuals. As part of the IRS’s Dirty Dozen Tax Scams for 2016, return preparer fraud remains a pressing concern. To avoid falling victim to such scams, the IRS has provided valuable tips on their website for selecting a trustworthy tax preparer. Moreover, the IRS has launched a free directory of federal tax preparers to help individuals make informed decisions.

The Tax Division has been actively working to combat tax preparer fraud, obtaining injunctions against hundreds of unscrupulous tax preparers in the past decade. Information about these cases can be found on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes is also available on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

In light of this case, it is essential to exercise caution when selecting a tax preparer. Remember, your financial security is at stake. By doing your research and choosing a reputable tax preparer, you can avoid the pitfalls of tax return preparer fraud.

Defendant: Barbara Lynn McCarthy

Criminal Charges: Held in contempt of court for violating a prior order that prohibited her from preparing federal income tax returns

Location: Greenbelt, Maryland

Date: August 11, 2024

Sentence: Ordered to return customer refunds, pay $2,500 fine, and provide list of prepared tax returns

Dollar Amount: $2,500

Category: White Collor Crime

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