A Detroit tax return preparer is facing a lawsuit from the federal government for allegedly preparing false tax returns for clients.
Margaret Brown, a resident of Detroit, has been accused of falsifying information on tax returns, including business income, business expenses, and education credits, the Justice Department announced.
The complaint, filed on February 15, 2023, alleges that Brown prepared a tax return in 2011 that reported a customer had a barber business with income of $9,673 and expenses of $124. However, the customer did not have a barber business in 2011, and had no idea where Brown obtained such information, according to the complaint.
In another example listed in the complaint, Brown allegedly reported $4,000 in qualified education expenses on a customer’s 2011 tax return. The complaint alleges that neither the customer nor her dependents attended college in 2011.
The complaint also alleges that for tax years 2010 and 2011, Brown failed to comply with due-diligence requirements imposed by federal law on tax preparers who claim the Earned Income Tax Credit on their customers’ tax returns.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013. The IRS has some tips on their website for choosing a tax preparer. 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.
Margaret Brown, Defendant
Exact Criminal Charges: Preparing false tax returns
City and State: Detroit, Michigan
Exact Date: February 15, 2023
Sentence or Outcome: Lawsuit pending
Dollar Amounts: $9,673 in income, $124 in expenses, $4,000 in education credits
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Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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