Alabama Tax Preparer Gets Jail Time for Falsifying Tax Returns

Chiquita Q. Broadnax, a resident of Montgomery County, AL, has been sentenced to 18 months in prison by Judge Mark Fuller of the Middle District of Alabama for her involvement in a fraudulent tax return perpetration scheme, the Justice Department and the Internal Revenue Service (IRS) announced.

According to the court documents, Broadnax was employed by James E. Moss as a tax return preparer at a tax return preparation business, known as Flash Tax, from December 2004 through January 2007.  During her employment at Flash Tax, Broadnax prepared and filed at least 900 tax returns, the majority of which contained false information designed to illegally obtain higher refunds to which her clients were not entitled.  

Moss trained Broadnax to prepare false tax returns in order to obtain higher tax refunds for Flash Tax clients by inflating or deflating specific numbers and/or by adding totally fictitious numbers to the return.  Moss was convicted early this month by an Alabama jury for orchestrating this fraudulent tax return preparation scheme, as was co-worker Avada L. Jenkins. Indictments have been filed against Flash Tax alleged co-conspirators Melinda M. Lambert and Lutoyua N. Thomson. Lambert has plead guilty to the crime of preparing false tax refund claims. Each defendant faced a maximum jail term of 86 years for the multiple crimes.

 

You may like these other stories...

School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...
Many senior US tax professionals believe that a streamlined audit process will be the top benefit resulting from the IRS Transfer Pricing Audit Roadmap, a new toolkit organized around a notional 24-month audit timeline,...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.