PORTSMOUTH, Va. (WAVY) - The federal government is cracking down on Mo Money Taxes.
The United States Department of Justice asked a federal court to shut down the Mo Money tax preparation office in Nashville, Tennesee this week.
The move shows Mo Money workers will be held accountable for tax preparation fraud that many local customers suspected all along.
The 27-page injunction explains in great detail how two workers in Nashville filed customers' taxes fraudulently. And, for many Norfolk customers, some of the practices may sound familiar.
Federal investigators say Nashville workers used customers' end-of-the-year pay stubs, not W-2 forms, to prepare returns, which is against the law. At a later date, the workers are accused of creating fake W-2 forms to go with the returns.
Investigators say the Nashville workers also claimed false tax credits for customers, ranging from child tax credits to the wrong number of dependents to bogus charitable donations.
Congressman Bobby Scott is encouraged by the results of the federal investigation.
"I am pleased that the Justice Department's investigation of Mo Money Taxes is continuing and progress is obviously being made to ensure that consumers are protected from fraudulent tax preparers," Congressman Scott said in a statement Wednesday.
There is no word about any of the Norfolk Mo Money franchise owners, and whether they will have to go to court in the future.
The feds estimate the Nashville workers took $5 million from the 1,100 returns filed in their office. Norfolk police estimated 1,700 customers filed returns with Mo Money Taxes local offices.
10 On Your Side's Anne McNamara broke this story last spring, bringing national attention to thousands of local residents who received late refund checks. The six Norfolk Mo Money offices shut down following 10 On Your Side's reports.
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