Cohen Introduces Bill to Protect Consumers from Fraudulent Tax Preparers Like Mo’ Money Taxes
[WASHINGTON, D.C.] – Congressman Steve Cohen (TN-09) today introduced the Tax Return Preparer Accountability Act to protect consumers from unscrupulous tax preparation businesses like Memphis-based Mo’ Money Taxes. The legislation would give the Internal Revenue Service (IRS) explicit authority to ensure that paid tax preparers are adequately trained and maintain high standards of integrity. Cosponsors of the bill include Reps. Robert “Bobby” Scott (VA-03), Carolyn Maloney (NY-12) and Eleanor Holmes Norton (D.C.-At Large).
“Throughout the country, Mo’ Money Taxes was caught defrauding honest taxpayers with outrageous fees and cheating them out of the refunds they deserved,” said Congressman Cohen. “I’m glad that the Department of Justice shut them down so they can’t prey on Memphians anymore, but there could be other fly-by-night tax preparers just like them that trick hardworking Americans out of their refunds and rarely face any consequences. My bill would help stop these dishonest business practices and protect the pocketbooks of middle-class families and the federal treasury alike.”
In September 2013, a federal court permanently barred the owners and a former manager of Mo’ Money Taxes from preparing tax returns for others and owning or operating a tax return preparation business. Mo’ Money Taxes had been the subject of a U.S. Department of Justice Tax Division lawsuit seeking to shut the business down. The suit also accused its owners of creating and maintaining a business environment that encourages the preparation of fraudulent federal income tax returns. In 2015, three Mo’ Money tax preparers were indicted for conspiracy to defraud the United States and for aiding in preparation of 19 false and fraudulent tax returns.