Brighton, MI tax return preparer sentenced for preparing false returns

March 23rd, 2010 - 5:06 am ICT by BNO News  

DETROIT, MICHIGAN (BNO NEWS) – A resident of Brighton, Michigan was sentenced to three years’ probation and ordered to pay $73,976 in restitution to the Internal Revenue Service (IRS) for aiding in the preparation of a false income tax return, prosecutors announced on Monday.

Earnestine Sears operated a tax preparation service in Redford, Michigan, under the name Home Users Company. For the tax years 2001 through 2005, Sears prepared 49 tax returns for individuals, which claimed false items including charitable contributions, tax preparation fees, Schedule “C” business losses and Schedule “E” supplemental income losses.

For example, Sears prepared a fraudulent return with $8,100 charitable contributions and $31,658 of employee expenses. In fact, the taxpayer was only entitled to a charitable deduction of $780 and employee expenses of $490.

The 49 taxpayers claimed credits, expenses and deductions in the amounts listed on their returns, which totaled over $675,000.

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