Collinwood Tax Preparer Charged With Preparing False Tax Returns

NASHVILLE, Tenn. – September 4, 2019 –  Steve Lewis Newell, 72, of Collinwood, Tennessee, was charged today with three counts of preparing false tax returns, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. 

According to a criminal information filed today, Newell owned and controlled Tax Masters and Accounting in Collinwood, Tennessee, and assisted in the preparation of individual tax returns on behalf of his clients.  Between 2014 and 2018, Newell prepared and filed more than 7,700 federal income tax returns, several of which contained inflated or fictitious deductions in Schedule A, including state and local taxes, charitable contributions, and employee business expenses.  Newell also falsified other items on his clients’ tax returns, such as the filing status of the taxpayer. Each of these fraudulent misrepresentations served to lower the tax liability for his clients.

The scheme resulted in clients obtaining refunds, which they were not entitled to and caused a tax loss to the IRS of at least $230,000.

If convicted, Newell faces up to three years in prison and a $250,000 fine on each count. 

This case was investigated by the IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Kathryn Booth.

The charges are merely an accusation and are not evidence of guilt.  The defendant is presumed innocent until proven guilty in a court of law.

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