Justice News

Department of Justice
Tax Division

Tuesday, June 17, 2014

Alabama Tax Return Preparer Pleads Guilty To Filing False Tax Returns

WASHINGTON – Russell Burroughs pleaded guilty today to aiding in the preparation of false tax returns in U.S. District Court for the Middle District of Alabama, the Justice Department and Internal Revenue Service (IRS) announced.

According to court documents, during the 2008 through 2010 tax seasons, Burroughs owned and operated Computer Services, a tax return preparation business located in Montgomery, Alabama. Burroughs admitted he falsified information for his clients on their tax returns in order to illegally generate higher tax refunds. He acknowledged that he intentionally included false items such as false business income or loss, false deductions, false real estate rental losses, false education credits and false energy credits in order to inflate his clients' refunds.

As part of his plea, Burroughs agreed to pay restitution to the United States in the amount of $211,960 and to be to be permanently enjoined from preparing or filing federal tax returns for others in the future.

As a result of his plea, Burroughs faces a maximum sentence of three years in prison, a $250,000 fine and one year of supervised release.

This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Katherine Reinhart, Charles M. Edgar Jr. and Michael Boteler of the Justice Department's Tax Division are prosecuting the case.

Updated April 6, 2015