Tax Preparer Goes to Jail for Close to Five Years

Eddye L. Lovely, a tax return preparer from Tomball, Texas, was sentenced in July to fifty-seven months in federal prison, the Justice Department and IRS announced. 

On April 6, 2011, Lovely was indicted on fourteen counts of aiding and assisting in the preparation of false tax returns. On September 28, 2011, he was charged, pursuant to a superseding indictment, with sixteen counts of aiding and assisting in the preparation of false tax returns comprising the original fourteen counts plus two additional counts.
 
According to the superseding indictment, the court had released Lovely on bond pending trial and ordered him not to prepare any tax returns or commit additional crimes. While on pretrial release, Lovely aided and assisted in the preparation of materially false 2010 tax returns for two additional clients.
 
He pleaded guilty on December 12, 2011, to three of the sixteen counts charged in the superseding indictment. Following a pretrial hearing, the court revoked Lovely's bond and ordered him detained.
 
According to the superseding indictment and plea agreement, Lovely owned and operated "The Tax Master," a tax return business located in Harris County, Texas. Lovely prepared tax returns that contained fabricated Schedule C losses for businesses that the taxpayers did not own or operate as well as false or inflated Schedule A deductions for charitable contributions and other expenses.
 
The court found that the tax loss associated with the three charges to which Lovely pleaded guilty as well as all relevant conduct associated with this case was more than $1 million.
 
Related articles:
 
Source: US Department of Justice, Tax Division
 

You may like these other stories...

Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...
With tomorrow being Tax Day, you might see some procrastinators at your office filling out forms, printing out paperwork, or getting last-minute tax advice from their accountant so they can meet the IRS’s filing...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.