Tax Preparer Goes to Jail for Close to Five Years | AccountingWEB

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
 
Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.