New Orleans Federal Court Bars Louisiana Woman From Preparing Improper Tax Returns

WASHINGTON – A federal court in New Orleans has permanently barred Tracy Bonds from preparing federal tax returns that willfully or recklessly understate her customers’ tax liabilities, the Justice Department announced today. The civil injunction order, to which Bonds agreed without admitting the government’s allegations, was signed by Judge Eldon E. Fallon of the U.S. District Court for the Eastern District of Louisiana.

The government complaint in the case alleged that Bonds, of Tickfaw, La., whose business is called Tracy’s Tax Service, prepared federal income tax returns that understated her customers’ tax liabilities by improperly claiming the earned income tax credit (EITC). The injunction order requires that Bonds obtain information from her customers to verify that they are eligible for the EITC. Under the order, Bonds must also complete six hours of tax preparation education and must post the injunction order in her place of business for two years so that customers will be aware of the requirements imposed on her.

In the past decade, 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.