U.S. Court Issues Permanent Injunction Order Against Maine Tax Return Preparer

The U.S. Department of Justice reports in its press release (quotation, not an independent finding): “WASHINGTON – A federal court in Maine permanently barred Donna L. Hamilton from preparing federal tax returns for others, the Justice Department announced today. The court also ordered the Maine resident to provide her customer lists to the government and to mail copies of the court order to her customers. Hamilton consented to the civil injunction order. According to the government complaint, Hamilton operated a tax return preparation service under the name East Coast Accounting from her mother’s residence in Topsham, Maine. Hamilton allegedly purchased the business from her mother, Carol East Palesky, who had previously operated a business that provided tax return preparation and other accounting services under the name East Accounting Associates. On Dec. 12, 2007, U.S. District Judge D. Brock Hornby issued an order of permanent injunction against Palesky prohibiting her from preparing federal tax returns and advising anyone about the preparation of a federal income tax return. The complaint states that Hamilton prepared approximately 82 returns during the 2006 and 2007 filing seasons. The government complaint also alleges that Hamilton prepared federal tax returns during the 2005 filing season but did not sign any of the returns. The complaint further alleges that the IRS estimates a potential $123,000 loss to the U.S. Treasury. According to the complaint, Hamilton fabricated and/or inflated deductions relating to employees’ business expenses, capital losses and education credits. One example in the complaint asserts that Hamilton reported a $1,000 education credit on he”