WASHINGTON—The United States has filed suit in federal court in Brooklyn to permanently bar Garry P. Webb, also known as Garry P. Webb-Bey, from preparing federal income tax returns for others, the Justice Department announced today. The civil injunction suit alleges that Webb prepared federal income tax returns for customers improperly claiming that income his customers earned in the New York area was “foreign” income exempt from tax.
According to the government’s complaint, Webb falsely advises his customers that only residents of Washington, D.C. are subject to federal income tax, and the complaint goes on to state that the IRS has identified 82 returns he prepared excluding income based on that frivolous position. The complaint alleges that Webb also raises similar frivolous arguments before the New York State Division of Tax Appeals.
Besides seeking to bar Webb from preparing federal income tax returns, the government’s suit further seeks a court order requiring Webb to provide the government a list of his customers’ names, mailing and e-mail addresses, and telephone and Social Security numbers. The suit was filed in the U.S. District Court for the Eastern District of New York.
A federal court in California has issued injunctions against two tax preparers who have used similar tax fraud schemes. More information about these California cases can be found at http://www.usdoj.gov/tax/txdv06602.htm and http://www.usdoj.gov/tax/txdv06224.htm.
Since 2001 the Justice Department has obtained injunctions against more than 200 tax preparers and tax-fraud promoters. More information about these cases is available on the Justice Department website at http://www.usdoj.gov/tax/taxpress2006.htm. More information about the Justice Department’s Tax Division can be found at http://www.usdoj.gov/tax.