WASHINGTON—A federal judge in Portland, Maine has permanently barred Carol East Palesky of Topsham, Maine, from preparing federal tax returns for others, the Justice Department announced today. According to the government’s civil injunction complaint, Ms. Palesky operated a business under the name East Accounting Services, preparing federal income tax returns claiming inflated deductions and credits for her customers resulting in an understatement of her customers’ tax liabilities.
The court ordered Ms. Palesky to mail a copy of the injunction to all persons or entities for whom she prepared federal tax returns, amended returns, or other federal tax documents or forms since Jan. 1, 2003.
In addition, Ms. Palesky must provide the government with a list of names, addresses, e-mail addresses, telephone numbers, and Social Security or tax identification numbers for everyone for whom she has prepared or helped to prepare a federal tax return for the years 2003-2005.
Since 2001, the Justice Department’s Tax Division has obtained more than 295 injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department Web site at http://www.justice.gov/tax/taxpress2007.htm, as is information about the Justice Department’s Tax Division at http://www.justice.gov/tax/index.html.