Grady Smith, Tax Return Fraud, Tennessee 2023

MEMPHIS, TN – In a shocking case of tax return fraud, Grady Smith, who does business as One Price Refunds, has been accused of preparing false tax returns, causing over $800,000 in harm to the government. According to a complaint filed with the U.S. District Court for the Western District of Tennessee, Smith has prepared over 2,000 tax returns since 2009.

Smith’s alleged scheme involves understating his customers’ federal tax liabilities by reporting false or inflated business expenses, reporting false or inflated educational expenses, and improperly claiming the earned income tax credit. In addition, the complaint alleges that Smith has prepared tax returns using fictitious taxpayer identification numbers, thereby obscuring his identity as the tax return preparer.

The Internal Revenue Service has identified return preparer fraud as one of the Dirty Dozen Tax Scams for 2013. The IRS has some tips for choosing a tax preparer, which can be found on their website at www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm.

The complaint filed against Smith alleges that his activities may have caused a total of over $800,000 in harm to the government. This case serves as a reminder of the importance of choosing a reputable tax preparer and being vigilant against tax return scams.

The case against Smith is a stark reminder of the consequences of tax return fraud. It is crucial for taxpayers to be aware of the warning signs of tax return scams and to take steps to protect themselves from becoming victims.

The Tax Division has a long history of pursuing cases against unscrupulous tax preparers. This case is a testament to their commitment to protecting taxpayers and holding accountable those who engage in tax return fraud.

The U.S. District Court for the Western District of Tennessee will hear the case against Smith. The outcome of this case will have significant implications for taxpayers and tax preparers alike.

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