Justice Dept. Bars TN Woman From Preparing Tax Returns, Demands Client List

The Justice Department announced this week that a federal court has permanently barred Linda Hendrieth, of Memphis, Tennessee, from preparing income tax returns or claims for refunds.

The final judgment, requires Hendrieth to notify her customers of the judgment and to provide to the government the names, addresses, and taxpayer identification numbers of her customers.

"People who prepare false or fraudulent tax returns cheat their customers and unfairly shift the tax burden to honest American taxpayers," said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. "The Department of Justice and the Internal Revenue Service are working vigorously to stop their systematic abuses of the tax system."

Hendrieth operates Taxing Solutions Plus, Inc., a Memphis-based tax return preparation business. The government alleged that Hendrieth overstated her clients’ tax deductions without their knowledge as a means of increasing her tax return preparation fees, which were linked to the amounts of the refunds the returns claimed. Hendrieth’s clients frequently learned about her services from co-workers or family members. The government’s complaint alleges that Hendrieth prepared nearly 900 tax returns for the tax years 2001 through 2003, which claimed refunds in excess of $2.8 million.

Court filings indicate that Hendrieth either made up or vastly inflated claimed deductions, such as deductions for medical and dental expenses, property taxes, charitable contributions, and job related expenses. For one client, Hendrieth prepared a return that claimed deductions for charitable contributions of $34,394, even though the taxpayer provided no substantiation of that amount to Hendrieth. Many of the returns audited by the IRS have resulted in Hendrieth’s clients having to pay substantial additional taxes.

You may like these other stories...

Truckers and other owners of heavy highway vehicles take note: Your next federal highway use tax return is due on September 2.The September 2 due date, which was pushed back two days because the normal August 31 deadline...
The head of the IRS has a message for taxpayers and tax preparers who have endured long wait times while on the phone with the tax agency: Call your member of Congress.During his keynote speech at the 69th Annual Meeting of...
Regulators struggle with conflicts in credit ratings and auditsThe Public Company Accounting Oversight Board (PCAOB), which was created by the Sarbanes-Oxley Act in 2002, released its third annual report on audits of...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.