The United States has asked a federal court to bar a CPA in Tucker, Ga., a suburb of Atlanta, from preparing federal tax returns for others. The Department of Justice is seeking an injunction to halt tax preparation by Adegbite, who reportedly prepared about 1,500 tax returns from 2008 through 2011, is alleged to have falsified returns to understate tax liabilities and boost returns. He is accused of fabricating or exaggerating deductions and tax credits his clients are not eligible to take. That includes allegedly creating Schedule C losses for non-existent businesses and claiming the First Time Home Buyer Credit for taxpayers who did not actually purchase a home.
His actions are alleged to have cost the government millions of dollars in lost taxes. Interviews conducted by the Internal Revenue Service produced statements that clients were unaware of Adegbite's action and did not ask him to claim those items on their returns. The IRS said it assessed additional taxes of about $1 million for 285 returns it examined, a deficiency of about $3,500 per return.