April 10 — A federal injunction seeks to shut down Memphis-based Mo’ Money Taxes.
The government contends tax losses from fraudulent tax returns prepared by the firm in 2011 cost the IRS more than $9 million.
The U.S. Justice Department has long had an eye on Mo’ Money and the tax preparation business. The focus intensified last year after hundreds of Mo’ Money clients in several states alleged bounced checks, excessive fees and the failure of the business to pass along IRS refunds.
Those complaints reached U.S. Rep Steve Cohen, D-Memphis, and U.S. Rep. Robert C. Scott, D-Va. Both urged the Justice Department to investigate. Federal agents raided the South Memphis headquarters of Mo’ Money taxes last April.
Tuesday’s injunction accuses Mo’ Money owners Markey Granberry and Derrick Robinson and store manager Eumora Reese of “creating and maintaining a business environment that encourages the preparation of fraudulent federal income taxes.”
The injunction would prevent them from ever again acting as federal tax return preparers or owning a tax preparation business.
The injunction was requested by the chief counsel of the Internal Revenue Service and was filed in U.S. District Court for the Western District of Tennessee Western Division.
Last fall, many Mo’ Money tax offices in the Memphis area opened under new names.
—————
Copyright 2013 – The Commercial Appeal, Memphis, Tenn.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
Tags: Firm Management, Income Tax
