Department of Justice Seal Department of Justice
FOR IMMEDIATE RELEASE
FRIDAY, APRIL 12, 2002
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

JUSTICE DEPARTMENT FILES LAWSUIT TO HALT TAX RETURN PREPARER
FROM PREPARING TAX RETURNS FOR HIS CLIENTS


Washington, D.C. - The Department of Justice filed a lawsuit in federal court in Nashville today seeking to stop James L. Wray of Nashville, Tennessee from preparing income tax returns. The papers filed in the lawsuit allege that Wray solicits clients by claiming he will obtain tax refunds, which he refers to as "found money." For a flat fee or a percentage of the refund, Wray prepares tax returns that report fictitious expenses, or claim tax deductions that are not allowable under the Internal Revenue Code. The complaint also alleges that Wray has falsely represented that he is a former employee of the Internal Revenue Service.

"Tax return preparers who prepare false income tax returns and claim bogus refunds should be put out of business," said Eileen J. O'Connor, Assistant Attorney General of the Justice Department's Tax Division.

According to the complaint, many of Wray's clients have been audited by the Internal Revenue Service and have been required to pay additional taxes and penalties. In a statement filed in court, one client said that Wray prepared a tax return for her claiming she had paid alimony, when in fact, she had received alimony. As a consequence of the false claim, the client ended up owing the government several thousand dollars. To date, the Internal Revenue Service has identified 126 returns prepared by Wray which have claimed refunds of almost $300,000.

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