Aug 6th 2012
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.
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Source: US Department of Justice, Tax Division