Texas Tax Preparer Sentenced to 57 Months for Aiding and Assisting in the Preparation of False Tax Returns
Eddye L. Lovely, a tax return preparer from Tomball, Texas, was sentenced today to 57 months in federal prison, the Justice Department and Internal Revenue Service (IRS) announced. Lovely appeared before U.S. District Judge Nancy F. Atlas in Houston.
The sentencing comes after Lovely was charged with 14 counts of aiding and assisting in the preparation of false tax returns, which were later superseded by a 16-count indictment on September 28, 2011. According to the superseding indictment, Lovely was ordered not to prepare any tax returns or commit additional crimes while on pre-trial release, but he continued to aid and assist in the preparation of false tax returns for two additional clients.
As the owner and operator of "The Tax Master," a tax return business located in Harris County, Texas, Lovely prepared tax returns that contained fabricated Schedule C losses for businesses that the taxpayers did not own or operate, as well as false or inflated Schedule A deductions for charitable contributions and other expenses. The court found that the tax loss associated with the three charges to which Lovely pleaded guilty, as well as all relevant conduct associated with this case, was over $1 million.
Lovely pleaded guilty on December 12, 2011, to three of the 16 counts charged in the superseding indictment. Following a pretrial hearing, the court revoked Lovely’s bond and ordered him detained. The Justice Department’s Tax Division commended the investigative efforts of the IRS agents involved in the case and Tax Division Trial Attorneys Tracy Gostyla and Kathryn Ward, who prosecuted the case.
The sentence of 57 months in federal prison for Eddye L. Lovely serves as a warning to those who would attempt to cheat the system and perpetuate false tax returns. It is a reminder that the Justice Department and IRS will continue to work together to bring those responsible to justice and ensure that those who commit tax crimes are held accountable.
The case against Eddye L. Lovely highlights the importance of tax compliance and the need for individuals to ensure that they are reporting their income accurately and honestly. It also underscores the importance of the role that tax preparers play in ensuring the integrity of the tax system and the need for them to adhere to the highest standards of professionalism and ethics.
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