WASHINGTON – A federal court today has permanently barred Montrice McGhee of Memphis, Tenn., from preparing federal income tax returns for others. Chief Judge Jon Phipps McCalla of the U.S. District Court for the Western District of Tennessee issued the permanent injunction order against McGhee, who, according to papers filed in the case, prepared returns using the business name Blessed Professional Tax Service, Inc. McGhee consented to the court order.
The government complaint in the case alleged that McGhee repeatedly engaged in fraudulent conduct by understating her customers’ federal income tax liabilities. The complaint alleged that McGhee told customers that she specialized in return preparation for ministers and other clergy members, as well as anyone involved in church activities. According to the complaint, the Internal Revenue Service estimates the harm from McGhee’s misconduct for tax years 2001 through 2004 exceeds $1 million.
Since 2001, the Justice Department has obtained injunctions against more than 310 tax preparers and tax-fraud promoters. More information about these cases is available on the Justice Department website, as is information about the Justice Department’s Tax Division. http://www.usdoj.gov/tax.