IRS Takes Step to Stop Jonesboro Tax Prep

by Arkansas Business Staff  on Monday, May. 14, 2018 12:00 am   1 min read

The Internal Revenue Service wants to stop a Jonesboro woman and her tax preparation business from handling federal tax returns for customers.

Rachelle Eldridge-Bray and her company, Tax & Financial Advantage Group Inc., allegedly prepare “false federal income tax returns that generate bogus refunds,” according to a civil lawsuit the feds filed May 3 in U.S. District Court in Jonesboro.

The lawsuit for a permanent injunction also said that her customers are unaware that Eldridge-Bray and her company have prepared and filed false tax returns for them.

In some cases, she misled customers about “what can ‘legally’ be claimed on their tax returns, particularly with respect to various credits and deductions,” the filing said.

The IRS said that since 2013, Eldridge-Bray and Tax & Financial Advantage have filed 5,425 tax returns for their customers. The IRS scrutinized 25 of those tax returns for the 2014-15 tax years and found the government’s loss was about $70,000, the lawsuit said.

She also allegedly understated her customers’ liabilities or overstated their refund on 23 of the 25 returns.

The IRS also looked at 29 returns the University of Phoenix graduate filed in 2015 and found a total deficit of $140,000 from those returns.

“Many customers now face large income tax debts and may be liable for penalties and interest,” the lawsuit said.

The IRS has asked that a federal judge order Eldridge-Bray and her company not to have anything to do with federal tax returns for customers.

“If Eldridge-Bray and TFG are not enjoined from all tax preparation, they are likely to continue to prepare and file false tax returns,” the lawsuit said.

Eldridge-Bray and TFG could not be reached by telephone Thursday, and they have not filed a response to the lawsuit.

 

 

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