FORMER JACKSON HEWITT STORE MANAGER BARRED BY U.S. COURT FROM PREPARING FALSE FEDERAL TAX RETURNS

Injunction Is Second Federal Court Order Involving Jackson Hewitt Franchises Falsely Reporting Indian Casino Gaming Proceeds as Not Taxable

WASHINGTON, D.C. - A federal judge has barred David Meals, former manager of a Jackson Hewitt tax preparation store in Hanford, Calif., from preparing federal income tax returns that falsely claim that casino gaming proceeds paid to Native Americans are exempt from federal income tax, the Justice Department announced today.

The United States sued Meals last year, alleging that when he was manager of the Jackson Hewitt store he prepared and supervised other employees who prepared more than 100 federal income tax returns that claimed false tax exemptions. The returns falsely claimed that casino gaming proceeds paid to members of the Tachi Yokut Indian Tribe were exempt from federal income tax. A copy of the government complaint is available at http://www.usdoj.gov/tax/txdv06576.htm.

Like all Americans, Native Americans are subject to federal income tax on all income they receive unless express language in a statute or treaty exempt it. The federal Indian Gaming Regulatory Act expressly requires tribes that distribute gaming proceeds to their members to advise the recipients that the money is taxable.

The permanent injunction order, to which Meals consented, was signed by U.S. District Court Judge Anthony W. Ishii of the U.S. District Court for the Eastern District of California in Fresno.

Last year a Florida federal court enjoined a Miami Jackson Hewitt franchise and its owners from preparing income tax returns making similar false claims regarding Indian gaming income. http://www.usdoj.gov/tax/txdv06429.htm

Since 2001, the Justice Department’s Tax Division has obtained more than 240 injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department Web site at http://www.usdoj.gov/tax/taxpress2007.htm. More information about the Justice Department's Tax Division can be found at http://www.usdoj.gov/tax.