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Thursday, March 4, 2010

Government Sues to Close South Carolina Tax Return Preparer

Return Preparer Allegedly Fabricated Tax Returns & Then Directed the Refunds to Her Own Bank Accounts

WASHINGTON – The United States has asked a federal court in Columbia, S.C., to permanently bar Dorothy Anderson, d/b/a DL Anderson Tax Service, from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Dorothy Anderson of Hopkins, S.C., has operated a business called "DL Anderson Tax Service," which prepares federal income tax returns for taxpayers that unlawfully understate income tax liabilities.

The government complaint alleges that Anderson fraudulently prepared and electronically filed tax returns using individuals’ names and social security numbers without their knowledge or authorization. Anderson’s preparation of false and fraudulent tax returns caused the United States to issue to the taxpayers substantial tax refunds to which they were not legally entitled. According to the complaint, the Internal Revenue Service has determined that Anderson filed tax returns that generated over $290,000 in refunds that were directly deposited into bank accounts she controlled.

Over the past decade, the Justice Department’s Tax Division has obtained more than 435 injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department Web site.

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Updated September 15, 2014