Tennessee Tax return Preparer Sentenced to Prison for Filing Fraudulent Returns

A Nashville, Tennessee resident was sentenced to serve 12 months and one day in prison today for aiding and assisting in the preparation of fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jack Smith for the Middle District of Tennessee.

According to documents filed with the court, Tracey Brown operated from her residence a tax return preparation business, Total Tax Services. From approximately January 2006 through December 2010, Brown routinely filed fraudulent tax returns without her clients’ knowledge or permission in an attempt to increase their refunds. On these returns, Brown claimed false medical expenses, charitable contributions and business losses as well as other phony deductions, thereby causing a tax loss of approximately $443,605.

In addition to the prison term imposed, Brown was ordered to serve one year of supervised release and to pay $210,169 in restitution to the Internal Revenue Service (IRS). Brown previously pleaded guilty in September 2016 to one count of aiding and assisting in the preparation of a false tax return.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Smith commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Nathan Brooks of the Tax Division and Assistant U.S. Attorney Thomas Jaworski, who prosecuted this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.