Related Federal Cases
- CPA Nicholson Gets 5 Years for $740K Tax Scam · Mississippi
- LBS Tax Services Owner, Franchisees Face Tax Fraud Charges · Mississippi
- Former Sheriff’s Vendor Faces Tax Charges · Mississippi
- McComb Woman Sentenced for Tax Fraud Scam · Mississippi
- FDIC Assembles New Banking Watchdogs · Washington
Local Tax Return Scammer Shut Down
A notorious tax return scammer has been permanently barred from preparing federal tax returns for others, the U.S. District Court for the Southern District of Mississippi ruled.
Teresa Chism, the owner of Lady T. Taxes in Durant, Mississippi, was found guilty of preparing federal income tax returns that fraudulently overstated her customers’ claims for refunds.
According to a government complaint, Chism claimed refundable credits, including the Earned Income Tax Credit (EITC) and credits for education expenses, that her customers were either ineligible to receive or were not entitled to receive in the amounts claimed on the returns.
The complaint alleged that Chism frequently fabricated Forms W-2 and submitted them with a tax return as evidence of a customer’s eligibility for the EITC.
The United States alleged in the complaint that Chism prepared at least 2,845 returns since 2010. Audits of 220 returns prepared by Chism claiming the EITC and/or other refundable credits revealed that 98 percent of these returns claimed credits totaling more than $1 million that Chism’s customers were not eligible to receive.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
The Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers in the past decade. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Key Facts
- State: Mississippi
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime