Federal Court Bars Maine Resident from Preparing Tax Returns for Others
Tax Return Preparer Allegedly Inflated Deductions and Failed to Report Capital Gains on Customers Returns Resulting in $1 Million Loss to the U.S. Treasury
WASHINGTON – A federal court in Maine has permanently barred Robert A. Grover from preparing federal tax returns for others, the Justice Department announced today. The court also ordered the Maine resident to provide his customer lists to the government and to mail copies of the complaint and court order to his customers. Grover consented to the civil injunction order.
According to the government complaint, Grover operated a tax return preparation service under the name Grover Tax Preparation LLC in Kennebec County, Maine. The complaint noted that Grover had a history of violating state tax laws in that he was indicted on 41 counts of income tax evasion in violation of a Maine statute. On Dec. 17, 2008, Grover entered pleas of nollo contendre (no contest) to these charges and is scheduled to be sentenced in the state matter in March 2009.
The government’s complaint alleges that Grover prepared more than 2,600 federal tax returns during a four-year period. According to the complaint, Grover fabricated and/or inflated deductions and understated gross receipts on his customers’ Schedule C forms. In addition, the complaint alleges that Grover failed to report capital gains from the sale of assets on some of his customers’ Schedule D forms. Grover also allegedly fabricated and/or inflated deductions related to his customers’ rental properties on Schedule E forms. In the complaint, the government estimates that the U.S. Treasury has incurred from $1 million up to $29.5 million in losses from tax returns prepared by Grover.
Acting Assistant Attorney General John A. DiCicco thanked Tax Division trial attorney Lisa Bellamy for her handling of the government’s case. The Justice Department has obtained injunctions against more than 365 tax return preparers and tax-fraud promoters since 2001.
Information about the Justice Department’s Tax Division and its efforts to stop fraudulent return preparers is available on the Justice Department Web site.