COURT BARS LOUISIANA TAX RETURN PREPARERS FROM INFLATING DEDUCTIONS FOR CUSTOMERS

Preparers Had Been Claiming False Deductions For Mariners

WASHINGTON, D.C. - WASHINGTON D.C. - The Justice Department announced today that a federal court in New Orleans, Louisiana has ordered four tax return preparers to stop preparing returns claiming false deductions for non-existent or improper business expenses. The four are Douglas Paul Boudreaux and John Lawrence LeBourgeois, of Houma, Louisiana; Lanny John Boudreaux of Galliano, Louisiana; and Romona Marie Picou of Chauvin, Louisiana. The court also directed those individuals to give the Justice Department the names, street and e-mail addresses, phone numbers, and social security or tax identification numbers of all customers for whom they have prepared any federal tax return or claim for refund containing improper deductions.

The separate orders entered against each preparer apply to returns prepared as far back as January 1, 2000. The orders also require the four individuals to contact persons for whom they prepared those returns and inform them of the court's action, and that the IRS might seek to collect additional taxes, interest, and penalties from them.

According to the complaints filed by the Justice Department, the four individuals have prepared income tax returns for mariners and overstated their allowable deductions by listing as deductions purported business expenses that were not actually incurred by the taxpayers. The complaints alleged that in the typical case, the preparers prepared returns claiming business expense deductions for meals or other incidentals that were provided to the mariners without charge by their employers. The preparers agreed to be enjoined from preparing false or fraudulent federal income tax returns.

Information on other recent injunctions entered and suits filed can be found at http://www.usdoj.gov/tax/taxpress2004.htm. Information on the Justice Department's Tax Division can be found at http://www.usdoj.gov/tax/index.html