Federal Court Bars Arkansas Tax Return Preparer From Preparing Tax Returns

Yesterday, a federal court in Jonesboro, Arkansas permanently barred Rachelle Eldridge-Bray from preparing federal income tax returns for others. The civil injunction order, to which Eldridge-Bray agreed, was signed by Judge D.P. Marshall Jr. of the U.S. District Court for the Eastern District of Arkansas.  

The complaint alleges that Eldridge-Bray prepares tax returns that understate her customers’ income tax liabilities and overstate her customers’ refunds. Eldridge-Bray unlawfully prepares federal tax returns with fabricated business income and expenses and bogus itemized deductions, according to the allegations in the complaint. 

Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.