Justice Department Seeks To Shut Down Detroit Area Tax Return Preparers
Machista Choice And Tracey Randolph Allegedly Prepare Tax Returns With Bogus Claims
WASHINGTON - The Justice Department announced today that it has sued two Detroit area tax return preparers, seeking to bar them from preparing federal tax returns for others. The civil injunction suit alleges that Machista Choice and Tracey Randolph claim bogus deductions on customers' federal tax returns. The complaint also alleges that Randolph claims bogus credits on customers' tax returns.
Choice and Randolph allegedly included fabricated claims for charitable deductions, employee business expenses and other deductions, as well as improper dependent claims on tax returns that they have prepared since 2004 and 2006, respectively. According to the complaint, Choice and Randolph prepared returns for customers together until 2006 under the business names "Nedra's Way Tax Service" and "Olivia's Way Tax Service," but since 2006, they have prepared tax returns separately.
The complaint further alleges that Randolph instructed customers under Internal Revenue Service (IRS) audit to give false statements and fabricated documents to the IRS, in order to give the false impression that Randolph's fabricated claims on the customers' tax returns were legitimate and supported by fact.
In the past 10 years the Justice Department's Tax Division has obtained injunctions against more than 470 tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.