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By stan_sipple

Feds indict tax return preparer for filing 300 false income tax returns. KC Business Journal.

A federal grand jury in Kansas City on Friday indicted a former tax preparer for filing nearly 300 tax returns to the Internal Revenue Service that contained false information.

Federal prosecutors said they think Donald Bushnell, 55, of Kansas City, listed more than $1 million in business losses for his clients between 2001 and 2005. By doing so, Bushnell reduced his customers' taxable income.

Bushnell Contract and Labor Service clients were unaware of Bushnell's tactics, according to the indictment. The clients did not own businesses or incur any business-related losses. Bushnell faces 20 counts of tax-preparer fraud.

This isn't the first time Bushnell has caught the attention of federal authorities in connection with his alleged tax schemes.

The IRS audited his tax services in 2006 and found that at least 186 of his clients had inflated or fabricated business losses in their tax returns, which Bushnell prepared.

The finding resulted in a permanent injunction against Bushnell preparing tax returns.

Full post as published by Showmeblawgs on April 12, 2008 (boomark / email).