February 13, 2004

Collierville Return Preparer Pleads Guilty to Tax Charges

Memphis, TN - Terrell L. Harris, U.S. Attorney for the Western District of Tennessee, and Sherree W. Preston, Special Agent in Charge of Internal Revenue Service Criminal Investigation, announced today that Dorothy Ann Todd, 50, of Collierville, Tennessee, pled guilty on February 12, 2004 to five counts of aiding and assisting in the preparation of false income tax returns. Todd will be sentenced on April 28, 2004 at 9:00am by U.S. District Judge Jon P. McCalla.

According to the Information filed during the hearing, Todd prepared 1998 federal income tax returns for five individuals that fraudulently claimed refunds they were not entitled to receive. The returns were prepared between January 27, 1999, and May 21, 1999, and claimed refunds between $1,202.00 and $3,318.00. The fraudulent returns contained false Schedule C business income, false dependants and false filing status claims.

Todd faces a maximum penalty of up to 15 years in prison and fines of up to $1,250,000.

Preston said, "During this filing season, taxpayers are reminded to choose their return preparer carefully." "While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government and the tax paying public," stated Preston.

This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Stephen C. Parker prosecuted the case for the government.

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