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Friday, February 8, 2013

Court Bars South Carolina Tax Return Preparers from Preparing Returns for Others

Court Enjoins Return Preparers Who Prepared Returns Allegedly Overstating Refunds through Fabricated and Inflated Deductions and Earned Income Credit Scheme

A federal district judge in Florence, S.C., permanently barred Rachel D. Watson, of Florence, and Susann Allen of Darlington, S.C., from preparing federal income tax returns for others, the Justice Department announced today. The injunctions bar Watson and Allen from preparing returns for others and require them to send copies of the injunction to any employers for whom they prepared returns since Jan. 1, 2008.

According to the government’s complaint in the case, Watson and Allen prepared federal income tax returns at a number of businesses in South Carolina including, most recently, Fludd’s Express Tax Service and Gold Valley Pawn. The complaint alleged that Watson and Allen prepared returns that unlawfully claimed the Earned Income Tax Credit by reporting fictitious Schedule C businesses or business income or fictitious dependents. The complaint also alleged that Watson and Allen fabricated or inflated deductions. The complaint alleged that these activities led to their clients filing returns which unlawfully understated income tax liabilities and overstated refunds. Watson and Allen consented to the entry of the injunctions.

In the past 10 years the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.

Related Materials:

United States v. Susann Allen, et al.

Permanent Injunction By Stipulation and Consent (Watson) (PDF)
Permanent Injunction By Stipulation and Consent (Allen) (PDF)

Press Release Number: 
Updated June 3, 2016