Gayle Lemmon, Tax Evasion, Iowa 2023

Iowa tax preparer Gayle Lemmon and her company, Gayle’s Bookkeeping and Tax Service Inc., are at the center of a federal court case that seeks to shut them down for allegedly preparing federal tax returns that understated tax liabilities by claiming improper deductions for the business use of the home and for non-deductible personal expenses.

According to the government complaint, Lemmon fabricated deductions on customers’ returns for charitable contributions and inflated deductions for un-reimbursed employee business expenses. The Internal Revenue Service has examined approximately 243 returns that Lemmon prepared and found that 224 of them understated the customer’s tax liability.

The tax loss from Lemmon’s alleged misconduct between 2003 and 2008 could be as much as $17 million. The lawsuit seeks to bar Lemmon and her firm from preparing federal tax returns for others.

The Justice Department has brought suit in federal court against Gayle Lemmon of Humboldt, Iowa. The lawsuit seeks to bar her and her firm from preparing federal tax returns for others.

Gayle Lemmon, a resident of Humboldt, Iowa, is the defendant in this case. Lemmon is charged with preparing federal tax returns that understated tax liabilities by claiming improper deductions for the business use of the home and for non-deductible personal expenses.

In the past decade, the Justice Department has obtained injunctions against more than 380 tax preparers and tax-fraud promoters. Information about these cases is available on the Justice Department’s Tax Division Web site.

Case details: Defendant: Gayle Lemmon, Crime: Preparing federal tax returns that understated tax liabilities, City and State: Humboldt, Iowa, Exact Date: Not specified, Sentence or outcome: Ongoing lawsuit.

Source: https://www.justice.gov/archives/opa/pr/justice-department-asks-federal-court-shut-down-iowa-tax-preparation-firm