FOR IMMEDIATE RELEASE
January 16, 2007
www.usdoj.gov/usao/aln

TAX PREPARER SENTENCED IN FEDERAL COURT

BIRMINGHAM, AL - Today in United States District Court MICHAEL DEWAYNE SCOTT was sentenced to six months imprisonment, six months home confinement, and will serve a one-year supervised release for assisting in the preparation of false federal income tax returns.

SCOTT, 50, of Centerpoint, Alabama, was sentenced by U.S. District Court Judge Karen O. Bowdre. In addition to the sentence he was also fined $1,000. SCOTT was convicted of this charge on September 19, 2006, and was indicted in U.S. District Court on August 2, 2006.

“Tax preparers will face jail time when they assist in the filing of false federal income tax returns,” states U.S. Attorney Alice H. Martin. “Tax filers are advised to carefully verify the figures on their returns before submission to the IRS because they will ultimately be responsible for the final product.”

SCOTT hired himself out in order to assist tax payers prepare their federal income tax returns. SCOTT inflated deductions for medical and dental expenses; charitable deductions; and, employee and miscellaneous expenses which caused substantial losses to the Government. These falsifications also caused the unsuspecting tax filers to have to re-pay their refunds to the U.S. Government.

Special Agents of the Internal Revenue Service investigated this case. Assistant United States Attorney Frank M. Salter prosecuted the case on behalf of the U.S. Government.