Federal Court Permanently Enjoins Iowa Tax Preparation Firm

Injunction Order Imposes Restrictions on Woman and Her Business

WASHINGTON, Nov. 9 /PRNewswire-USNewswire/ -- A federal judge in Sioux City,
Iowa, today barred a Humboldt, Iowa, woman, Gayle Lemmon, and her tax
preparation business from claiming improper deductions on federal income tax
returns. The court's order, which Lemmon agreed to, also prohibits her from
representing customers before the IRS and requires her to attend
government-approved tax training classes.

According to the government complaint in the civil injunction case, Lemmon's
firm, Gayle's Bookkeeping and Tax Service, Inc., prepared federal income tax
returns for customers that unlawfully understated tax liabilities by claiming
improper deductions for the business use of the home and for non-deductible
personal expenses. The suit also alleged that Lemmon claims improper
deductions for charitable contributions and employee business expenses.

According to the complaint, the IRS examined approximately 243 returns that
Lemmon prepared and found that 224 of them understated the customers' tax
liabilities. The complaint alleges that the tax loss from Lemmon's alleged
misconduct between 2003 and 2008 could be as much as $17 million.

In the past decade the Justice Department has obtained injunctions against
more than 430 tax preparers and tax fraud promoters. Information about these
cases is available on the Justice Department Tax Division's Web site.

SOURCE U.S. Department of Justice

U.S. Department of Justice Office of Public Affairs, +1-202-514-2007, TDD,
+1-202-514-1888