FOR IMMEDIATE RELEASE
January 30, 2003

BIRMINGHAM TAX RETURN PREPARERS ARRESTED IN
FRAUDULENT TAX REFUND SCHEME

Alice H. Martin, United States Attorney for the Northern District of Alabama, and C. Andre Martin, Special Agent in Charge of the Internal Revenue Service, announce that TRACY RENAY BYRON, 29, and REGINALD DEWAYNE BYRON, 31, both of Birmingham, were arrested on Tuesday, January 28, 2003, on charges of conspiring to file false claims for tax refunds. The Byrons were indicted on these charges December 30, 2002.

According to Martin, the indictment charges that the BYRONS participated in a scheme to file false tax returns with the Internal Revenue Service. As party of the scheme, the BYRONS prepared and used false W-2 forms showing fictitious wages and fictitious federal income tax withholdings. They also caused returns to be filed with false listings of dependents. In furtherance of the scheme, they obtained and assisted others in obtaining false identification cards.

"The indictment alleges that the BYRONS caused 32 fraudulent tax returns to be filed claiming false refunds of approximately $129,244.00. If convicted on all counts in the indictment TRACY BYRON could receive a maximum sentence of one hundred and fifty (150) years in prison and a maximum fine of $7,250,000 and REGINALD BYRON could receive a maximum sentence of forty-five (45) years in prison and a maximum fine of $2,000,000," stated Ms. Martin.

Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.

This case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney George Martin is prosecuting the case.