Friday, August 10, 2007

Tax Preparer Sentenced to 24 Months in Jail

A Jackson Hewitt tax preparer in San Jose was sentenced to 24 months in prison on Tuesday for filing false tax returns. Melinda Newens, who owned and operated two Jackson Hewitt Tax Service franchises pleaded guilty to the charges. Investigators claimed that Newens had included fraudulent deductions in the tax returns that she prepared then filed her clients' taxes electronically without their knowledge or consent. The Internal Revenue Service conducted audits of over 400 of her clients, and found that the losses to the government were over $1 million. As part of the plea agreement, Newens agreed to transfer her ownership of the two Jackson Hewitt franchises she owns. She also agreed to never again prepare tax returns professionally or supervise any other person preparing tax returns.

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