WASHINGTON D.C. Ė The Justice Department announced today that it has filed two lawsuits in federal court in Charlotte, North Carolina, to stop Jerry O. Adams and Demetria S. Adams from preparing income tax returns for others. The lawsuits allege that Jerry Adams and Demetria Adams collectively prepare hundreds of tax returns each year and it is estimated that the two prepared more than 1,600 tax returns during 2004 and 2005 that caused an estimated loss to the U.S. treasury of more than $3.8 million.
The suits further allege that they have operated through businesses called First Choice Tax Service, Precise Tax, and D&S Tax Service in Charlotte and Shelby, North Carolina. According to the complaints, Jerry Adams and Demetria Adams frequently prepare tax returns that understate wages, overstate credits, and result in excessive refunds.
The lawsuit also asks the court to order Jerry Adams and Demetria Adams to give the Justice Department a list of their customersí names, addresses, and Social Security numbers.
Todayís action is part of the Tax Divisionís efforts against corrupt tax preparers. Since 2001, the Justice Department has sought and obtained injunctions against more than 160 tax return preparers and promoters. More information about the Justice Departmentís efforts can be found at http://www.usdoj.gov/tax/taxpress2006.htm. Information about the Justice Departmentís Tax Division can be found at http://www.usdoj.gov/tax.