WASHINGTON, D.C. – A complaint has been filed in the U.S. District Court for the Southern District of Mississippi to “permanently bar” the owner of a tax preparation business.
The complaint reportedly claims that Teresa Chism of Durant, Mississippi, “fraudulently overstates refunds due by falsely claiming refundable credits, including the Earned Income Tax Credit (EITC) and credits for education expenses” on her customer’s income tax returns.
The United States Justice Department says the complaint also claims that Chism prepares fake IRS W-2, Wage and Tax statements to submit with the fraudulently prepared tax returns.
Chisom owns Lady T. Taxes. Reportedly, she has “prepared more than 2,845 tax returns.”
More than $1 million in tax credits were found in an audit of 220 returns that Chisom prepared. Her customers were not entitled to claim those credits on their returns.
The IRS has a section on their website to help people pick a tax return preparer. Click here for more.