U.S. Department of Justice Alice H. Martin United States Attorney Northern District of Alabama

BIRMINGHAM TAX RETURN PREPARERS PLEAD GUILTY TO
FILING FALSE TAX RETURNS

BIRMINGHAM, AL - Alice H. Martin, United States Attorney for the Northern District of Alabama, and Charles R. Pine, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations announce that BRENDA L. SPAHN, 55, and MELINDA MEGAHEE, 28, both of Birmingham, Alabama, pled guilty today to a federal Information charging them with assisting in the preparation of false income tax returns.

According to U.S. Attorney Alice H. Martin, SPAHN operated a tax return preparation business, Tax Max, Inc., a Jackson Hewitt franchise, in the Birmingham, Alabama area. MEGAHEE was a Jackson Hewitt employee. During the tax years 1999, 2000 and 2001, SPAHN and MEGAHEE knowingly prepared false returns for some of their clients by increasing deductions and filing status to create inflated refunds for tax clients. The IRS documented that SPAHN filed five false tax returns resulting in a tax harm of about $19,000. The IRS also determined MEGAHEE submitted three false tax returns resulting in a tax harm of about $11,000.

SPAHN could receive a maximum of twelve years in prison and a fine of up to $1 million. MEGAHEE could receive a maximum of six years in prison and a fine of up to
$500,000. Sentencing will be scheduled before Robert B. Propst, United States District Judge.

"The general public relies on the expertise of income tax return preparers to perform their duties honestly and competently. The IRS will seek out and we will prosecute those who do not," said U.S. Attorney Alice H. Martin. "The public should also be aware that the taxpayer whose false tax return is filed is ultimately responsible for any additional taxes found to be due and owing."

This case was investigated by Special Agents of the Internal Revenue Service- Criminal Investigations, and Assistant United States Attorney Ronald R. Brunson is prosecuting the case.

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