Rachel D. Watson, Filing False Tax Returns, South Carolina 2023

South Carolina Tax Preparers Banned from Filing False Tax Returns

A federal district judge in Florence, S.C., has taken drastic measures to put an end to a scheme involving South Carolina tax return preparers filing false tax returns, resulting in unlawful tax credits and deductions.

Rachel D. Watson, of Florence, and Susann Allen of Darlington, S.C., have been permanently barred from preparing federal income tax returns for others, according to a recent court ruling.

The injunction, which was obtained by the federal government, requires both Watson and Allen to send copies of the injunction to any employers for whom they prepared returns since January 1, 2008.

According to the government’s complaint, Watson and Allen prepared tax returns at a number of businesses in South Carolina, including Fludd’s Express Tax Service and Gold Valley Pawn. The complaint alleged that they prepared returns that unlawfully claimed the Earned Income Tax Credit by reporting fictitious Schedule C businesses or business income or fictitious dependents.

The complaint also alleged that Watson and Allen fabricated or inflated deductions, leading their clients to file returns that unlawfully understated income tax liabilities and overstated refunds.

The permanent injunctions were obtained with the consent of Watson and Allen, indicating a cooperation in the proceedings. The federal government has taken action against numerous tax-return preparers and tax-fraud promoters in recent years.

The permanent injunctions are available on the Justice Department’s website. The cases are United States v. Susann Allen, et al., and United States v. Rachel D. Watson.

Rules and regulations surrounding tax preparation are in place to protect the public from unscrupulous individuals taking advantage of the system.

Rachel D. Watson, Defendant

Defendant’s charges: Filing false tax returns

Location: Florence, South Carolina

Case date: Not specified in the source

Sentence/outcome: Permanently barred from preparing federal income tax returns for others

Companies involved: Fludd’s Express Tax Service and Gold Valley Pawn

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