MEMPHIS, Tenn. (AP/WAVY) - Federal prosecutors are seeking to shut down a Memphis-based company based on claims it prepared false tax returns in at least three states.
The Justice Department said Wednesday it is suing Mo Money Taxes.
A complaint filed in the Western District of Tennessee accuses the company, owned by Markey Granberry and Derrick Robinson, of filing false returns that incorrectly reported their customers' federal tax liabilities, which caused them to underpay their taxes.
The lawsuit alleges that the returns made false claims for education credits and the Earned Income Tax Credit in Virginia, Mississippi and Tennessee.
The lawsuit also says the company charged deceptively high fees.
WAVY.com spoke with Congressman Bobby Scott (D-VA) about his push for this federal investigation.
"I'm delighted to see the federal agencies take action. The complaints were widespread," Scott said.
Scott issued the following statement on the latest developments:
"During the early part of the 2012 tax preparation season, my Congressional office and others in Memphis, Tennessee, Jackson, Mississippi and elsewhere, were inundated with complaints ranging from lost or incomplete tax returns to accusations of fraudulent or unauthorized submissions of returns by the Mo' Money tax preparation firm. I, along with Representative Steve Cohen from Tennessee, and Representative Bennie Thompson from Mississippi, asked the U.S. Department of Justice and the Internal Revenue Service to investigate the complaints. The case brought by the Department of Justice seeks to close all Mo' Money operations. I hope this action will provide some measure of justice to those who were victimized by Mo Money's activities."
The phone number listed on Mo Money Taxes website was disconnected, and an email to the company was returned as undeliverable Wednesday.
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