Department of Justice Seal Department of Justice
FOR IMMEDIATE RELEASE
TUESDAY, DECEMBER 10, 2002
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

FEDERAL JUDGE SHUTS DOWN REPARATIONS TAX PREPARER


WASHINGTON, D.C. – On Dec. 9, a federal court in Macon, Ga., permanently barred Willie Henry Haugabook of Montezuma, Ga., from preparing federal income-tax returns. Judge C. Ashley Royal also ordered Haugabook to contact his clients and inform them that federal law does not allow a tax credit for reparations for slavery, segregation, separate-but-equal laws, treatment as a "second-class" citizen or other similar grounds.

"The law does not provide a tax credit for slavery reparations, so claiming one is illegal," said Eileen J. O'Connor, Assistant Attorney General for the Tax Division of the Department of Justice. "The Justice Department will take the actions necessary to stop schemes that undermine the federal tax system and leave honest taxpayers footing the bills."

In papers filed with the court, Mr. Haugabook admitted to preparing at least 384 amended federal income-tax returns claiming a fabricated tax credit for slavery reparations. The government estimates that these returns claimed a total of approximately $18 million in bogus credits.

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