UNITED STATES SEEKS TO BAR NORTH CAROLINA MAN FROM PREPARING TAX RETURNS FOR CUSTOMERS

Thomasville man allegedly lists fictitious deductions on customer returns

WASHINGTON, D.C. - The Justice Department announced today that it has asked a federal court to permanently bar Oscie K. Parker, of Thomasville, North Carolina, from preparing federal income tax returns for customers. The lawsuit, filed yesterday in U.S. District Court for the Middle District of North Carolina in Greensboro, alleges that Parker repeatedly prepares customer tax returns claiming false exemptions, deductions, and earned income tax credits. Parker allegedly operates his return preparation business under the names MPS Tax Service, Fastest Tax Refund Service, Bill Jackson Enterprises, Inc., Agencia De Trabajo Latina, and Providian, Ltd.

According to court filings, Parker has prepared tax returns containing fictitious business expenses, such as a deduction on one customer’s return related to non-existent rental property and a deduction on another’s return claiming an expense for a non-existent garage business. The complaint alleges that the IRS has identified false information on every one of the 59 Parker-prepared returns for tax years 2000 through 2002 that it has audited to date. The complaint projects that Parker’s conduct has caused an understatement of tax liability of at least $807,000. The complaint states that Parker does not sign all of the returns he prepares, making the actual damage to the United States likely much greater.

“Preparers of 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 these systematic abuses of the tax system.”

The government’s complaint is part of an ongoing crackdown on return preparers who are giving false advice. The government has filed numerous lawsuits seeking injunctions against return preparers who prepare false or fraudulent federal tax returns. More information about these cases is available at: http://www.usdoj.gov/tax/taxpress2004.htm and http://www.usdoj.gov/tax/taxpress2005.htm. More information about the Tax Division is available at: http://www.usdoj.gov/tax/index.html.